https://www.taxtmi.com/caselaws?id=469259 Where an assessee substantiates share purchases and sales through invoices, bank statements, demat records, contract notes, and broker ledgers, a mere investigation report branding the scrip as a penny stock is insufficient to treat long-term capital gains as bogus. In the absence of any independent enquiry, adverse finding against the assessee, or material showing participation in price rigging or accommodation entries, the share-sale proceeds could not be taxed as unexplained income. The consequential commission addition under section 69C also failed because it depended entirely on the disallowed capital gain addition. The ratio affirms that documentary evidence must be dislodged by cogent contrary material. en-us Thu, 27 Jun 2024 00:00:00 +0530 Thu, 11 Jun 2026 19:59:48 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=469259 Where an assessee substantiates share purchases and sales through invoices, bank statements, demat records, contract notes, and broker ledgers, a mere investigation report branding the scrip as a penny stock is insufficient to treat long-term capital gains as bogus. In the absence of any independent enquiry, adverse finding against the assessee, or material showing participation in price rigging or accommodation entries, the share-sale proceeds could not be taxed as unexplained income. The consequential commission addition under section 69C also failed because it depended entirely on the disallowed capital gain addition. The ratio affirms that documentary evidence must be dislodged by cogent contrary material. Case-Laws Income Tax Thu, 27 Jun 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=469259