https://www.taxtmi.com/caselaws?id=448016 ITAT Mumbai ruled in favor of assessee claiming LTCG exemption under section 10(38) despite allegations of bogus transactions involving penny stocks with artificial price increases through circular trading. While tribunal noted assessee was not regular investor, company financials didn't match market prices, and penny stock characteristics existed, revenue failed to produce material evidence linking assessee to dubious transactions, price rigging, or entry/exit providers. SEBI report contained no reference to assessee's involvement. Tribunal found assessee likely benefited as unsuspecting investor seeking quick profits, with AO applying mere presumptions without concrete evidence. en-us Fri, 22 Dec 2023 00:00:00 +0530 Tue, 23 Apr 2024 11:30:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=448016 ITAT Mumbai ruled in favor of assessee claiming LTCG exemption under section 10(38) despite allegations of bogus transactions involving penny stocks with artificial price increases through circular trading. While tribunal noted assessee was not regular investor, company financials didn't match market prices, and penny stock characteristics existed, revenue failed to produce material evidence linking assessee to dubious transactions, price rigging, or entry/exit providers. SEBI report contained no reference to assessee's involvement. Tribunal found assessee likely benefited as unsuspecting investor seeking quick profits, with AO applying mere presumptions without concrete evidence. Case-Laws Income Tax Fri, 22 Dec 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=448016