https://www.taxtmi.com/caselaws?id=465375 Where the AO treated disclosed short-term capital gains from listed share transactions as bogus on the basis of an Investigation Wing report identifying the scrips as "penny stocks," the Tribunal held that suspicion cannot replace proof when the assessee demonstrates genuine purchase and sale through the stock exchange at prevailing market rates, supports the trades with contemporaneous documentary evidence, routes consideration through banking channels, and reflects movement of shares through a demat account, and the AO points to no defect in such evidence. The Tribunal also relied on the assessee's pattern of regular share investing and acceptance of taxability of STCG, including occurrence of share-trading losses, to negate an accommodation-entry inference. The STCG and the declared capital loss were accepted as genuine, and additions were deleted. en-us Thu, 19 Sep 2024 00:00:00 +0530 Thu, 18 Dec 2025 22:30:57 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=465375 Where the AO treated disclosed short-term capital gains from listed share transactions as bogus on the basis of an Investigation Wing report identifying the scrips as "penny stocks," the Tribunal held that suspicion cannot replace proof when the assessee demonstrates genuine purchase and sale through the stock exchange at prevailing market rates, supports the trades with contemporaneous documentary evidence, routes consideration through banking channels, and reflects movement of shares through a demat account, and the AO points to no defect in such evidence. The Tribunal also relied on the assessee's pattern of regular share investing and acceptance of taxability of STCG, including occurrence of share-trading losses, to negate an accommodation-entry inference. The STCG and the declared capital loss were accepted as genuine, and additions were deleted. Case-Laws Income Tax Thu, 19 Sep 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=465375