Exemption under section 10(38) for penny stock capital gains remained unresolved as the appeal was admitted for hearing.

The article addresses the assessee's claim for exemption under section 10(38) of the Income-tax Act, 1961, in relation to alleged long-term capital gains from sale of penny stock shares, together with the Revenue's challenge based on sales routed through a recognised stock exchange and payment of securities transaction tax. It records that the Orissa High Court admitted the appeal and listed it for final hearing, but did not render any final adjudication on the substantial questions of law.

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Issues: Whether the assessee's claim to exemption under section 10(38) of the Income-tax Act, 1961, in respect of alleged long-term capital gains from sale of penny stock shares, and the revenue's challenge to the dismissal of its appeal on the ground that the sales were through a recognised stock exchange with securities transaction tax paid, required consideration.

Outcome: The appeal was admitted and listed for final hearing; no final adjudication was rendered on the substantial questions of law.

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