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Informative

Genuineness of Penny Stocks Share Sale: ITAT Upholds ₹21.72 Lakh Addition as Sham Transaction

Update / Judgement Date

22 Aug 2025

Source

Taxscan

Author

Team — WCP Legal Desk

Reading Time

1 min read

Income TaxStock Market

The ITAT has upheld a "₹21.72 lakh addition" as a "sham transaction" in the "genuineness of penny stocks share sale." The tribunal's decision provides a significant victory for the government. The ruling clarifies that a tax authority can add an income to a taxpayer's account if it is a fraudulent transaction.