https://www.taxtmi.com/caselaws?id=469166 In penny stock cases, an addition under Section 68 of the Income-tax Act, 1961 cannot be sustained merely on suspicion, investigation inputs or the theory of human probabilities where the assessee has produced purchase and sale documents, banking records and demat trail. The Tribunal noted that the Revenue had not brought cogent material showing the assessee's involvement in price rigging, entry operations or exit arrangements, and that adverse inference based only on the company's financials or an abnormal price rise was insufficient to override the documentary evidence. The transaction was therefore treated as supported by record and the addition was held unsustainable. en-us Wed, 29 Oct 2025 00:00:00 +0530 Fri, 05 Jun 2026 19:01:30 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=469166 In penny stock cases, an addition under Section 68 of the Income-tax Act, 1961 cannot be sustained merely on suspicion, investigation inputs or the theory of human probabilities where the assessee has produced purchase and sale documents, banking records and demat trail. The Tribunal noted that the Revenue had not brought cogent material showing the assessee's involvement in price rigging, entry operations or exit arrangements, and that adverse inference based only on the company's financials or an abnormal price rise was insufficient to override the documentary evidence. The transaction was therefore treated as supported by record and the addition was held unsustainable. Case-Laws Income Tax Wed, 29 Oct 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=469166