Referred Sections:
Section 68
Section 10(38) of the Act.
Section 10(38) of the Income Tax Act, 1961,
Section 142 of the Act
Section 131

Referred Cases / Judgments:
Income Tax Officer, Ward 20(1) vs. Naveen Gupta [2006] 5 SOT 94 (Delhi).
CIT Vs. Durga Prasad More [1971] 82 ITR 540 (SC)
Anip Rastogi Vs. ITO ITA No. 3809/DEL/2018

S. 68 Bogus Capital Gains from Penny Stocks: The allegation that the Co is a penny stock co whose share price has been artificially rigged by promoters/brokers/operators to create non-genuine LTCG is not sufficient. The AO has failed to bring on record any evidence to prove that the transactions carried out by the assessee were not genuine or that the documents were not authentic. No specific enquiry or investigation was conducted in the case of the assessee and/or his broker either by the INV Wing or by the AO during the course of assessment proceedings. The penny stock was also not subject to any action from SEBI (Udit Kalra 176 DTR 249 (Del) distinguished, Fair Invest Ltd 357 ITR 146 (Del) followed)