https://www.taxtmi.com/caselaws?id=772996 ITAT Delhi ruled in favor of the assessee regarding LTCG exemption under section 10(38). The AO denied exemption claiming penny stock transactions based solely on huge profits earned. The tribunal held that mere profit generation doesn't establish penny stock status. Despite penny stock characteristics existing, revenue failed to prove assessee's involvement in dubious transactions, price rigging, or manipulation. No SEBI report implicated the assessee. Tax authorities relied on presumptions without material evidence linking assessee to fraudulent activities. The addition under section 68 was deleted and exemption under section 10(38) was allowed. en-us Wed, 23 Apr 2025 00:00:00 +0530 Sat, 14 Jun 2025 13:54:17 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=772996 ITAT Delhi ruled in favor of the assessee regarding LTCG exemption under section 10(38). The AO denied exemption claiming penny stock transactions based solely on huge profits earned. The tribunal held that mere profit generation doesn't establish penny stock status. Despite penny stock characteristics existing, revenue failed to prove assessee's involvement in dubious transactions, price rigging, or manipulation. No SEBI report implicated the assessee. Tax authorities relied on presumptions without material evidence linking assessee to fraudulent activities. The addition under section 68 was deleted and exemption under section 10(38) was allowed. Case-Laws Income Tax Wed, 23 Apr 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=772996