https://www.taxtmi.com/caselaws?id=756924 ITAT Mumbai ruled in favor of the assessee regarding alleged bogus LTCG on penny stock sales. The assessee properly purchased shares through banking channels, dematerialized them in DMAT account, and sold on recognized stock exchange receiving proceeds through legitimate banking process. AO failed to provide material evidence showing assessee's involvement in share price manipulation and denied cross-examination rights under section 142(3). The tribunal found AO's suspicions baseless without direct evidence, upholding CIT(A)'s deletion of section 68 addition and allowing section 10(38) exemption. Commission addition also deleted. Revenue's appeal dismissed. en-us Thu, 08 Aug 2024 00:00:00 +0530 Sat, 10 Aug 2024 09:55:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=756924 ITAT Mumbai ruled in favor of the assessee regarding alleged bogus LTCG on penny stock sales. The assessee properly purchased shares through banking channels, dematerialized them in DMAT account, and sold on recognized stock exchange receiving proceeds through legitimate banking process. AO failed to provide material evidence showing assessee's involvement in share price manipulation and denied cross-examination rights under section 142(3). The tribunal found AO's suspicions baseless without direct evidence, upholding CIT(A)'s deletion of section 68 addition and allowing section 10(38) exemption. Commission addition also deleted. Revenue's appeal dismissed. Case-Laws Income Tax Thu, 08 Aug 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=756924