No disallowance can be made merely for Investment in Penny Stock

Shri Kamal Kishore Soni Vs ITO (ITAT Hyderabad) Assessee has made the investment in the shares of Rockon Fintech in the year 2008-09 whereas the report of the investigation wing is dated 16.3.2018. Therefore, the argument of the assessee’s counsel that the assessee could not have known that Rockon Fintech is a penny stock company in the year of purchase of shares is quite acceptable. It is also seen from the Paper Book filed by the assessee that the assessee has been engaged in the trading of shares of a number of companies and Rockon Fintech is not only one company whose shares  the assess...