https://www.taxtmi.com/caselaws?id=312444 ITAT Mumbai dismissed assessee's appeal claiming LTCG exemption u/s 10(38) on penny stock sales. The tribunal held that investigation commenced from companies involved in penny stock trading, not from assessee, making procedural objections invalid. Assessee failed to discharge initial burden under section 68 to prove genuineness of steep price rise in penny stocks within short period. The tribunal found transactions were stage-managed to convert unaccounted income into fictitious LTCG and claim bogus exemption. AO was justified in denying section 10(38) exemption and treating bogus LTCG as unexplained cash under section 68. en-us Thu, 13 Apr 2023 00:00:00 +0530 Sat, 17 Feb 2024 20:36:26 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=312444 ITAT Mumbai dismissed assessee's appeal claiming LTCG exemption u/s 10(38) on penny stock sales. The tribunal held that investigation commenced from companies involved in penny stock trading, not from assessee, making procedural objections invalid. Assessee failed to discharge initial burden under section 68 to prove genuineness of steep price rise in penny stocks within short period. The tribunal found transactions were stage-managed to convert unaccounted income into fictitious LTCG and claim bogus exemption. AO was justified in denying section 10(38) exemption and treating bogus LTCG as unexplained cash under section 68. Case-Laws Income Tax Thu, 13 Apr 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=312444