https://www.taxtmi.com/caselaws?id=464622 Penny stock long-term capital gains claims were examined against surrounding circumstances, including weak financials, a sharp rise in share price, and investigation material suggesting manipulation and accommodation entries. Documentary evidence such as contract notes, demat records, banking channels and securities transaction tax payment was found insufficient on its own because genuineness had to be tested by human probabilities and the real nature of the transaction. The assessee failed to prove that the gains were genuine, and the arrangement was treated as a pre-arranged sham transaction. The related commission expenditure was viewed as incidental to the accommodation entry. The additions under sections 68 and 69C were upheld, and exemption under section 10(38) was denied. en-us Fri, 26 Jul 2024 00:00:00 +0530 Wed, 05 Nov 2025 15:23:38 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=464622 Penny stock long-term capital gains claims were examined against surrounding circumstances, including weak financials, a sharp rise in share price, and investigation material suggesting manipulation and accommodation entries. Documentary evidence such as contract notes, demat records, banking channels and securities transaction tax payment was found insufficient on its own because genuineness had to be tested by human probabilities and the real nature of the transaction. The assessee failed to prove that the gains were genuine, and the arrangement was treated as a pre-arranged sham transaction. The related commission expenditure was viewed as incidental to the accommodation entry. The additions under sections 68 and 69C were upheld, and exemption under section 10(38) was denied. Case-Laws Income Tax Fri, 26 Jul 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=464622