ITAT held short Term Capital Loss from a penny stock as Bogus

Shri Sanjay Kaul Vs ITO (ITAT Delhi) Whether the transaction carried out by the assessee and the claim of the short Term Capital Loss is in the normal course of the investment activity of the assessee. We find that the Assessing Officer has referred to investigation done by the Directorate of Investigation, Kolkata, to highlight the General modus operandi of providing bogus long-term or short-term capital gain/loss. The said report highlights that long-term capital gain is booked while the share prices are artificially jacked up and while downward journey is used by the operator for booking�...