Concessional penalty for search-disclosed unreconciled jewellery applies where substantive disclosure conditions are met despite omission from origina...
ITAT ruled against treating entire share sale proceeds as undisclosed income under section 68. While penny stock transactions require scrutiny, price volatility alone doesn't invalidate trades. Revenue must prove the entire transaction chain was fabricated to introduce unaccounted income. Though initial burden lies on assessee to prove genuineness through documentation, revenue must demonstrate specific evidence of tax evasion scheme. AO failed to conduct detailed investigation proving assessee's involvement in price manipulation. Even if transaction validity is questioned, disallowing entire purchase cost violates established judicial principles. The tribunal allowed assessee's appeal, holding that taxing full sale value without cost consideration is legally unsustainable. Addition deleted accordingly.
ITAT ruled against treating entire share sale proceeds as undisclosed income under section 68. While penny stock transactions require scrutiny, price volatility alone doesn't invalidate trades. Revenue must prove the entire transaction chain was fabricated to introduce unaccounted income. Though initial burden lies on assessee to prove genuineness through documentation, revenue must demonstrate specific evidence of tax evasion scheme. AO failed to conduct detailed investigation proving assessee's involvement in price manipulation. Even if transaction validity is questioned, disallowing entire purchase cost violates established judicial principles. The tribunal allowed assessee's appeal, holding that taxing full sale value without cost consideration is legally unsustainable. Addition deleted accordingly.
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