CBDT has issued Standard Operating Procedure (SOP) which need to be followed for ITR Processing or assessment in suspected Fraud case.
After amendment of year 1988 carried out in section 2 (22) (e), ‘shareholder’ has only to be a person who is beneficial owner of shares.
Section. 10(38) Bogus long-term gains from penny stocks: The transaction cannot be treated as bogus until and unless a finding is given that the shares were acquired by the assessee from the person other than the broker claimed by the assessee.