https://www.taxtmi.com/caselaws?id=312300 The ITAT Mumbai denied exemption u/s 10(38) for claimed LTCG on penny stocks. The tribunal held that when shares show unreasonable price rises over short periods, the assessee must prove the genuineness of such increases under section 68. The onus remains on the assessee to establish creditworthiness of companies, genuineness of price rise, and transaction authenticity. Mere production of bank details, purchase/sale documents, and D-Mat account records is insufficient. The tribunal found the LTCG transactions were a colourable device to convert unaccounted income into fictitious capital gains. The AO was justified in treating bogus LTCG as unexplained cash u/s 68. en-us Mon, 20 Mar 2023 00:00:00 +0530 Sat, 10 Feb 2024 16:00:12 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=312300 The ITAT Mumbai denied exemption u/s 10(38) for claimed LTCG on penny stocks. The tribunal held that when shares show unreasonable price rises over short periods, the assessee must prove the genuineness of such increases under section 68. The onus remains on the assessee to establish creditworthiness of companies, genuineness of price rise, and transaction authenticity. Mere production of bank details, purchase/sale documents, and D-Mat account records is insufficient. The tribunal found the LTCG transactions were a colourable device to convert unaccounted income into fictitious capital gains. The AO was justified in treating bogus LTCG as unexplained cash u/s 68. Case-Laws Income Tax Mon, 20 Mar 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=312300