Penny stock share purchase gains treated as unexplained credits u/s 68 rejected for lack of incriminating evidence; appeal dismissed.

In a challenge to an income-tax addition under s.68 based on alleged penny stock purchases, the dominant issue was whether the assessee's transactions could be treated as unexplained credits in the absence of incriminating material. The HC had held that the assessee was not named by any person in the investigation and no material relating to the assessee was recovered in the investigation conducted by the Investigation Wing, undermining the factual basis for invoking s.68. The SC found no ground to interfere under Art. 136 and dismissed the SLP, leaving the deletion of the s.68 addition undisturbed.

---

---

The Supreme Court dismissed the Special Leave Petition under Article 136 of the Constitution of India, stating no interference is warranted. The question of law remains open, and any pending applications are disposed of.

---