https://www.taxtmi.com/caselaws?id=471674 Documented share-sale proceeds cannot be treated as unexplained cash credit merely because the shares were identified as penny stocks. Purchase through a registered broker by cheque, demat-account holding and transfer, sale through a recognised stock exchange, and payment of securities transaction tax supported the genuineness of the transactions. Where no defects are found in these records and no material links the taxpayer to price rigging or accommodation entries, an investigation report containing only general penny-stock information is insufficient. The long-term capital-gains addition was therefore deleted. en-us Wed, 26 Jul 2023 00:00:00 +0530 Mon, 14 Sep 2026 18:28:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=471674 Documented share-sale proceeds cannot be treated as unexplained cash credit merely because the shares were identified as penny stocks. Purchase through a registered broker by cheque, demat-account holding and transfer, sale through a recognised stock exchange, and payment of securities transaction tax supported the genuineness of the transactions. Where no defects are found in these records and no material links the taxpayer to price rigging or accommodation entries, an investigation report containing only general penny-stock information is insufficient. The long-term capital-gains addition was therefore deleted. Case-Laws Income Tax Wed, 26 Jul 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=471674