https://www.taxtmi.com/caselaws?id=774981 The ITAT Pune upheld the validity of reopening assessment proceedings under section 147, confirming that a valid notice under section 148 was issued to the assessee. The AO's action was based on Investigation Wing reports regarding bogus long-term capital gains (LTCG) claims under section 10(38) from alleged penny stock transactions. The tribunal found the transactions suspicious as equity shares were purchased off-market in cash rather than through banking channels via recognized stock exchanges. SEBI had penalized the company involved for defrauding shareholders and misutilizing preferential share issue proceeds. Despite multiple opportunities, the assessee failed to provide submissions to rebut the CIT(A)'s findings. Following the precedent in PCIT vs. Swati Bajaj, the tribunal dismissed the appeal, upholding the rejection of LTCG exemption claims and confirming the transactions as bogus. en-us Mon, 14 Jul 2025 00:00:00 +0530 Thu, 17 Jul 2025 08:19:12 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=774981 The ITAT Pune upheld the validity of reopening assessment proceedings under section 147, confirming that a valid notice under section 148 was issued to the assessee. The AO's action was based on Investigation Wing reports regarding bogus long-term capital gains (LTCG) claims under section 10(38) from alleged penny stock transactions. The tribunal found the transactions suspicious as equity shares were purchased off-market in cash rather than through banking channels via recognized stock exchanges. SEBI had penalized the company involved for defrauding shareholders and misutilizing preferential share issue proceeds. Despite multiple opportunities, the assessee failed to provide submissions to rebut the CIT(A)'s findings. Following the precedent in PCIT vs. Swati Bajaj, the tribunal dismissed the appeal, upholding the rejection of LTCG exemption claims and confirming the transactions as bogus. Case-Laws Income Tax Mon, 14 Jul 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=774981