Scrip Can't Be Called Penny Stock When Shares Retained For More Than 10 Years; ITAT Deletes Addition

In a recent decision, the ITAT upheld the addition of unexplained cash credit related to shares of a penny stock. The appellant failed to substantiate the purchase of shares through appropriate evidence, leading to the retention of the addition by the ITAT. This case underscores the importance of maintaining thorough documentation and evidence in transactions involving penny stocks to avoid scrutiny and additions under income tax assessments.