https://www.taxtmi.com/caselaws?id=771023 ITAT Delhi allowed the assessee's appeal regarding denial of LTCG exemption under section 10(38) for sale of shares in a company classified as penny stock. The tribunal found no malice in the investment, noting shares were purchased through account payee cheque on preferential allotment basis, physically received, and properly dematted. Since shares were purchased in AY 2013-14 with HC approval for merger, held in demat account, and sold in open market with STT payment, revenue could not doubt the transaction's genuineness. No addition under section 68 was warranted. en-us Thu, 19 Dec 2024 00:00:00 +0530 Tue, 20 May 2025 08:53:36 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=771023 ITAT Delhi allowed the assessee's appeal regarding denial of LTCG exemption under section 10(38) for sale of shares in a company classified as penny stock. The tribunal found no malice in the investment, noting shares were purchased through account payee cheque on preferential allotment basis, physically received, and properly dematted. Since shares were purchased in AY 2013-14 with HC approval for merger, held in demat account, and sold in open market with STT payment, revenue could not doubt the transaction's genuineness. No addition under section 68 was warranted. Case-Laws Income Tax Thu, 19 Dec 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=771023