Addition of Bogus Capital Gains from Penny Stock Transaction Upheld

Hemil Subhashbhai Shah Vs DCIT (ITAT Ahmedabad) ITAT Ahmedabad confirms the addition of bogus long-term capital gains arising from a transaction involving a penny stock. The tribunal upholds the decision based on the failure of the assessee to prove the genuineness of the transaction despite submitting documentary evidence. The ruling cites a similar case in the Calcutta High Court that emphasizes the need to substantiate the price rise in shares with financials of the company, considering the involvement of entry operators and brokers in a large-scale scam. Facts- The assessee is aggrieved by...