https://www.taxtmi.com/caselaws?id=460461 ITAT Mumbai ruled in favor of assessee regarding LTCG exemption under section 10(38) on penny-stock transactions. AO had disallowed the claim based on Investigation Wing report and doubted assessee's financial prudence. However, assessee discharged burden of proof by submitting primary documents establishing genuineness of share transactions. ITAT relied on precedents including Shyam Pawar and others, noting absence of adverse comments from stock exchange or company officials. AO's reliance on unrelated persons' statements and unfounded presumptions was insufficient. ITAT directed deletion of addition under section 68 and allowed LTCG exemption claimed by assessee. en-us Mon, 08 Apr 2024 00:00:00 +0530 Sat, 25 Jan 2025 15:46:52 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=460461 ITAT Mumbai ruled in favor of assessee regarding LTCG exemption under section 10(38) on penny-stock transactions. AO had disallowed the claim based on Investigation Wing report and doubted assessee's financial prudence. However, assessee discharged burden of proof by submitting primary documents establishing genuineness of share transactions. ITAT relied on precedents including Shyam Pawar and others, noting absence of adverse comments from stock exchange or company officials. AO's reliance on unrelated persons' statements and unfounded presumptions was insufficient. ITAT directed deletion of addition under section 68 and allowed LTCG exemption claimed by assessee. Case-Laws Income Tax Mon, 08 Apr 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=460461