Allowing the appeal of the assessee the Tribunal held that , merely because 31000% increase in value of shares over 2 years is highly suspicious but cannot take the place of evidence. The addition cannot be made based on generalizations. Evidence collected from third parties cannot be used against the assessee without giving him a copy and an opportunity to rebut the same . ( ITA No. 2394/kol/2017, dt. 27.06.2018)(AY. 2014-15)
Prakash Chand Bhutoria v. ITO (Kol)(Trib), www.itatonline.org
S. 45: Capital gains- Penny Stocks- 31000% increase in value of shares over 2 years is highly suspicious but cannot take the place of evidence. The addition cannot be made based on generalizations. Evidence collected from third parties cannot be used against the assessee without giving him a copy and an opportunity to rebut the same [ S.68 ]