https://www.taxtmi.com/caselaws?id=313301 ITAT Chennai held that where assessee claimed exemption u/s. 10(38) on LTCG from sale of shares, but AO rejected exemption treating shares as penny stocks and assessed unexplained credit u/s. 68, the matter must be remitted back to AO. The tribunal consistently ruled that when SEBI reports or Investigation Wing reports are used against assessee without confrontation, natural justice principles are violated. Since material gathered during investigation was never confronted to assessee, appeal was allowed for statistical purposes with directions to AO to provide opportunity of being heard. en-us Wed, 04 May 2022 00:00:00 +0530 Sat, 06 Apr 2024 05:28:50 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=313301 ITAT Chennai held that where assessee claimed exemption u/s. 10(38) on LTCG from sale of shares, but AO rejected exemption treating shares as penny stocks and assessed unexplained credit u/s. 68, the matter must be remitted back to AO. The tribunal consistently ruled that when SEBI reports or Investigation Wing reports are used against assessee without confrontation, natural justice principles are violated. Since material gathered during investigation was never confronted to assessee, appeal was allowed for statistical purposes with directions to AO to provide opportunity of being heard. Case-Laws Income Tax Wed, 04 May 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=313301