Penny Stock Sale Not ‘Unaccounted Income’ if Purchase not doubted

Shripal Sheshmal Jain HUF Vs ITO (ITAT Ahmedabad) In a recent case, the Income Tax Appellate Tribunal (ITAT) Ahmedabad examined whether the sale of penny stocks could be deemed unaccounted income. The appeal filed by Shripal Sheshmal Jain HUF vs. ITO (ITAT Ahmedabad) sheds light on the complexities surrounding such transactions and tax assessments. The assessee declared income for AY 2012-13, including profits from trading activities involving VAS Infrastructure Ltd. However, the Assessing Officer (AO) raised concerns about potential accommodation entries and initiated proceedings to reassess ...