AO cannot make Addition for capital gains from penny stocks on mere statement recorded by INV Wing

Shri Deepak Nagar Vs ACIT (ITAT Delhi) Conclusion: Addition under section 68 on account of bogus capital gains from penny stocks was not justified as AO had not conducted any independent and separate enquiry to prove that the transactions carried out by the assessee were not genuine or that the documents were not authentic and assessee had successfully discharged the onus cast upon him by provisions of section 68. Held: Assessee was a habitual investor and a qualified professional and had shown exempt income on account of LTCG from transactions on which Securities Transaction Tax was paid.  ...