Bombay HC: No Addition for Penny Stock – Documentary Evidence

PCIT Vs Indravadan Jain, HUF (Bombay High Court) The Question before the Hon’ble High Court was ‘Whether addition u/s 68 of the Act for transaction made in penny stock was sustainable?’ The Hon’ble Bombay High Court upheld the decision of Hon’ble Mumbai Tribunal, wherein the Tribunal had held that since the shares were purchased on the floor of stock exchange and not from broker, payment was made through banking channel, deliverables were taken in DEMAT account where the shares remained for more than one year, contract notes were issued and the shares were also sold on stock...