https://www.taxtmi.com/caselaws?id=470482 Documented penny-stock capital-gains transactions cannot be treated as unexplained solely on investigation-wing information where the taxpayer provides purchase and sale records, broker details, bank records, demat statements and contract notes. Independent verification of those materials, evidence from brokers or banks, examination of the company's financials, or proof that the taxpayer received accommodation entries is required to displace the documentary record. A mismatch between the transaction value adopted in assessment and broker-supported records further weakens the addition. Additions for unexplained credits and estimated commission expenditure were deleted because suspicion did not constitute cogent contrary evidence. en-us Fri, 21 Mar 2025 00:00:00 +0530 Tue, 28 Jul 2026 19:00:21 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=470482 Documented penny-stock capital-gains transactions cannot be treated as unexplained solely on investigation-wing information where the taxpayer provides purchase and sale records, broker details, bank records, demat statements and contract notes. Independent verification of those materials, evidence from brokers or banks, examination of the company's financials, or proof that the taxpayer received accommodation entries is required to displace the documentary record. A mismatch between the transaction value adopted in assessment and broker-supported records further weakens the addition. Additions for unexplained credits and estimated commission expenditure were deleted because suspicion did not constitute cogent contrary evidence. Case-Laws Income Tax Fri, 21 Mar 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=470482