Loss from penny stock cannot be disallowed if no manipulative activities

JCIT (OSD) Vs Public Employees Retirement System of Ohio (ITAT Mumbai) ITAT held that addition of loss from traded in penny stock not justified if no information about engagement of assessee in manipulative activities and details of purchase/sales of shares submitted by him was not doubted. The assessee is a statutory authority in the state of Ohio, United States of America and is a tax resident of USA. It is engaged in providing retirement benefit to certain public employees of that state. It is also registered with SEBI as a foreign portfolio investor and is regularly investing in Indian mar...