| Question And Answer | |
|---|---|
| Subject: | cost of penny stock |
| Category: | Income-Tax |
| Querist: | 123 |
| Answered by: | Law Intern |
| Tags: | IDS 16, Penny Stocks, Reassessment |
| Date: | August 2, 2025 |
LTCG declared under ids 2016 but its cost was not disclosed being a payment from disclosed bank a/c
can ao issue notice u/s 148 for taxing cost of penny stock ?
any case law ?
IDS immunity will not apply if the cost of acquisition was fictitious. The AO is empowered for taxing that. In CIT v. NRA Iron & Steel Pvt. Ltd. [2019] 412 ITR 161 (SC), the Supreme Court held that merely routing money through banking channels is not enough to establish the genuineness of a transaction.
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