Profit Size Doesn’t prove Company Authenticity or Transactions in Penny Stock Cases

Brajesh Narnolia Vs ITO (ITAT Kolkata) Introduction: In a recent judgment dated January 17, 2024, the Income Tax Appellate Tribunal (ITAT) Kolkata, in the case of Brajesh Narnolia Vs ITO, delved into the intricate aspects of long-term capital gains (LTCG) and the genuine nature of companies involved in penny stock transactions. This ruling brings to light the critical understanding that the genuineness of a company and the transactions involving its shares cannot solely be determined based on the magnitude of profit realized by an investor. Detailed Analysis The core issue in this appeal was t...