https://www.taxtmi.com/caselaws?id=777193 ITAT allowed the taxpayer's appeal. Long-term capital gains exemption under s.10(38) was upheld because share purchases were through banking channels, held in DEMAT for over a year and sold on a recognized exchange, so AO's finding of a bogus penny-stock transaction and additions were disallowed. The AO's treatment of sale proceeds as unexplained u/s 68 was rejected. Most unexplained-expense additions were deleted, but three payments denied by payees remained unexplained and that ground was dismissed. An addition relating to a loan to a third party was deleted after bank records established identity, creditworthiness and repayment. en-us Fri, 22 Aug 2025 00:00:00 +0530 Tue, 26 Aug 2025 08:41:03 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=777193 ITAT allowed the taxpayer's appeal. Long-term capital gains exemption under s.10(38) was upheld because share purchases were through banking channels, held in DEMAT for over a year and sold on a recognized exchange, so AO's finding of a bogus penny-stock transaction and additions were disallowed. The AO's treatment of sale proceeds as unexplained u/s 68 was rejected. Most unexplained-expense additions were deleted, but three payments denied by payees remained unexplained and that ground was dismissed. An addition relating to a loan to a third party was deleted after bank records established identity, creditworthiness and repayment. Case-Laws Income Tax Fri, 22 Aug 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=777193