{"id":27034,"date":"2022-05-21T08:54:07","date_gmt":"2022-05-21T03:24:07","guid":{"rendered":"https:\/\/itatonline.org\/digest\/?post_type=qa&#038;p=27034"},"modified":"2022-05-27T06:50:42","modified_gmt":"2022-05-27T01:20:42","slug":"sec-68-and-penny-stock","status":"publish","type":"qa","link":"https:\/\/itatonline.org\/digest\/qa\/sec-68-and-penny-stock\/","title":{"rendered":"Sec.68 and penny stock"},"content":{"rendered":"<p>Assessee is individual and regularly doing investment in share. He has invested share of few co. He has purchase the shares of two co through authorised stock broker and paid the amount by account payee cheques .\u00a0 After 4 years of holding the said shares He sold the shares again through authorise stock brokers and received money as per settlement of stock exchange. During the course of assessment proceedings , AO has given show cause as to why sale proceeds of shares should not be added U\/Sec. 68 on the ground that the shares of these co are penny stock and the rise of share price is 4O0 times. The said co does not have Turnover or strong Financials.\u00a0 And also show case as to why the\u00a0 remaining unsold shares\u00a0 on the same price\u00a0 \u00a0should not be taxes as unexplained investment. Assessee has given detailed reply, however AO has made addition U\/Sec.68 the sale proceeds of shares and unsold shares on same price without giving any reference to any section. Whether AO is justified in doing so?<\/p>\n","protected":false},"comment_status":"open","ping_status":"closed","template":"","qa_expert":[33],"qa_category":[23],"qa_tag":[147,597,595,538],"class_list":["post-27034","qa","type-qa","status-publish","hentry","qa_expert-advocate-shashi-ashok-bekal","qa_category-income-tax","qa_tag-cash-credits","qa_tag-penny-stock","qa_tag-penny-stocks","qa_tag-section-68"],"acf":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/qa\/27034","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/qa"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/qa"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=27034"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=27034"}],"wp:term":[{"taxonomy":"qa_expert","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/qa_expert?post=27034"},{"taxonomy":"qa_category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/qa_category?post=27034"},{"taxonomy":"qa_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/qa_tag?post=27034"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}