https://www.taxtmi.com/caselaws?id=754593 ITAT Kolkata dismissed assessee's appeal challenging denial of exemption under section 10(38) for long-term capital gains. Assessee purchased 6,000 equity shares of Sulabh Engineers Services Ltd. through broker, but AO found the company to be a paper entity with manipulated stocks. Despite assessee's argument of earning small profit, ITAT held that magnitude of profit doesn't determine genuineness of investee company. Following Calcutta HC precedent in Swati Bajaj case, ITAT ruled that investment in companies with manipulated shares by brokers cannot claim exemption, regardless of profit amount earned. en-us Wed, 17 Jan 2024 00:00:00 +0530 Thu, 27 Jun 2024 08:55:26 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=754593 ITAT Kolkata dismissed assessee's appeal challenging denial of exemption under section 10(38) for long-term capital gains. Assessee purchased 6,000 equity shares of Sulabh Engineers Services Ltd. through broker, but AO found the company to be a paper entity with manipulated stocks. Despite assessee's argument of earning small profit, ITAT held that magnitude of profit doesn't determine genuineness of investee company. Following Calcutta HC precedent in Swati Bajaj case, ITAT ruled that investment in companies with manipulated shares by brokers cannot claim exemption, regardless of profit amount earned. Case-Laws Income Tax Wed, 17 Jan 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=754593