Capital gains from penny stocks cannot be denied on presumption

Bogus penny stock capital gains: Claim of the assessee cannot be denied on the basis of presumption and surmises in respect of penny stock by disregarding the direct evidences on record relating to the sale/purchase transactions in shares supported by broker’s contract notes, confirmation of receipt of sale proceeds through regular banking channels and the demat account. Failure to provide a copy of the statement relied upon and failure to provide opportunity of cross-examination renders the assessment order void. After considering the information / material received from other source, A.O. ...