Bogus LTCG from Penny stocks- ITAT Confirms Addition for failure to explain Jump in Price

Sanjay Bimalchand Jain Vs Pr CIT (Bombay High Court) The authorities have recorded a clear finding of fact that the assessee had indulged in a dubious share transaction meant to account for the undisclosed income in the garb of long term capital gain. While so observing, the authorities held that the assessee had not tendered cogent evidence to explain as to how the shares in an unknown company worth Rs.5/­ had jumped to Rs.485/­ in no time. The Income Tax Appellate Tribunal held that the fantastic sale price was not at all possible as there was no economic or financial basis as to how a sha...