Capital Gain on Penny Stocks cannot be bogus if Paper work is in order

This article deal with the issue of Long Term Capital Gain on Sale of Small Company Shares or on Penny Stocks. Article is based on ITAT Kolkata order in the case of Surya Prakash Toshniwal VS. ITO in which it held that Long-term capital gains claimed exempt u/s 10(38) cannot be treated as bogus unexplained income if the paper work is in order. It further held fact that the Company whose shares were sold has violated SEBI norms and is not traceable does not mean that the assessee is at fault. Briefly, the facts are that the assessee in the present case is a Hindu Un-divided Family (HUF) and de...