Gujarat HC Upholds Penny Stock Loss Claims

PCIT (Central) Vs Affluence Commodities Pvt. Ltd (Gujarat High Court) Gujarat High Court held that When the purchase of the same shares by the counterparty has been held to be genuine, the sale by the assessee cannot be treated as bogus Ahmedabad: The Gujarat High Court has upheld the decision of income tax authorities to allow losses claimed by Affluence Commodities Pvt. Ltd. from transactions in certain shares, rejecting the Revenue’s contention that these were bogus transactions designed to evade tax. The court’s ruling reinforces the principle that if the corresponding purchas...