Addition towards trading in penny stock sustained for lack of assistance during appeal proceedings

Tarachand Agrawal Vs ITO (ITAT Ahmedabad) The appeal filed by the assessee, Tarachand Agrawal, was dismissed by the Income Tax Appellate Tribunal (ITAT) Ahmedabad. The case involved the addition of trading in penny stocks of a shell company, M/s. Vax Housing Finance Corporation Ltd., as the assessee was suspected of obtaining bogus long-term capital gains. The case was reopened under Section 147 of the Income Tax Act, and notices were duly served to the assessee. However, the assessee failed to comply with the notices and did not attend the hearings. The ITAT upheld the addition made by the R...