Penny Shares cannot be treated as bogus if documents are in order

Facts of the Case The assessee, an individual, filed her return of income for A.Y. 2005- 06 on 04.08.2005 declaring income of Rs. 1,19,653/- after claiming the income from long term capital gain (LTCG) of Rs. 93,00,0 12/- on sale of listed equity shares and subjected to STT as exempt under section 10(38) of the Income Tax Act, 1961 (in short ‘the Act’). The return was processed under section 143(1) of the Act and the case was subsequently taken up for scrutiny. In the course of assessment proceedings, the AO observed that the shares of Shukun Constructions Ltd. (hereinafter referre...