The assessee, a share trader and investor, incurred loss from transactions in different shares on the stock exchange. The AO treated the shares as penny-stocks and added back the loss amount to the total income of the assessee, which addition was upheld by the CIT(A). On appeal, the Tribunal held that the assessee had duly submitted the relevant documents relating to the share trading loss before the Revenue authorities as well as before the Tribunal, and there was no question raised about the veracity of these documents. Since it was a case of loss, there was no question of any peak increase in share value. The assessee had suffered losses in a number of shares and had transacted a huge volume of shares during the year. The entire addition was made on the basis of a preconceived idea generated after a general investigation by the investigating authority, without independent verification qua the assessee. Accordingly, the addition of Rs. 2,27,75,453 was set aside and quashed. (AY. 2015-16)