Mere high appreciation in share value not enough to treat gain from Penny stocks as bogus

PCIT Vs. Prem Pal Gandhi (Punjab & Haryana High Court) The issue in short is this: The assessee purchased shares of a company during the assessment year 2006-2007 at ` 11/- and sold the same in the assessment year 2008-2009 at Rs. 400/- per share. In the above case, namely, ITA-18-2017 also the assessee had purchased and sold the shares in the same assessment years. The Assessing Officer in both the cases added the appreciation to the assessees’ income on the suspicion that these were fictitious transactions and that the appreciation actually represented the assessees’ income from undi...