No section 68 addition for Cost of purchase of penny stock shares

Hiralaxmi Ishwarlal Mehta Vs ITO (ITAT Mumbai)

ITAT noted that the assessee already disclosed the bogus long term capital gain claim on sale of penny stock shares under income disclosure scheme. The sum so disclosed was Rs. 16,20,156/-. The cost of these shares was Rs. 30,673/- which was a component of the total sale proceeds of Rs. 16,50,829/-. In this regard in this year the Assessing Officer proposed to add the cost of the shares Rs. 30,673/- as undisclosed income under section 68 of the I.T. Act. Section 68 provides for

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