https://www.taxtmi.com/caselaws?id=386321 The Delhi HC upheld the denial of exemption under Section 10(38) for alleged bogus long-term capital gains (LTCG). The assessee claimed 491% returns from sale of shares in a company whose earnings per share remained minimal (Rs. 0.01 in March 2015-16 and negative Rs. 0.48 in March 2014). The Tribunal found the astronomical share price increase unjustified given the company's poor financial parameters, with no reasonable explanation for anyone purchasing shares at over Rs. 500. The company was identified by Bombay Stock Exchange as a penny stock used for bogus LTCG schemes. The assessee failed to provide evidence of actual sale beyond broker contract notes. The HC found no question of law arose and upheld the factual findings against the assessee based on record evidence. en-us Tue, 17 Sep 2019 00:00:00 +0530 Mon, 21 Jul 2025 10:38:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=386321 The Delhi HC upheld the denial of exemption under Section 10(38) for alleged bogus long-term capital gains (LTCG). The assessee claimed 491% returns from sale of shares in a company whose earnings per share remained minimal (Rs. 0.01 in March 2015-16 and negative Rs. 0.48 in March 2014). The Tribunal found the astronomical share price increase unjustified given the company's poor financial parameters, with no reasonable explanation for anyone purchasing shares at over Rs. 500. The company was identified by Bombay Stock Exchange as a penny stock used for bogus LTCG schemes. The assessee failed to provide evidence of actual sale beyond broker contract notes. The HC found no question of law arose and upheld the factual findings against the assessee based on record evidence. Case-Laws Income Tax Tue, 17 Sep 2019 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=386321