https://www.taxtmi.com/caselaws?id=464922 ITAT Rajkot allowed the assessee's appeal and deleted the addition made u/s 68 on alleged unexplained receipts from long-term capital gains on penny stock shares. The Tribunal held that the purchase and sale transactions were genuine, supported by bank statements, contract notes, demat records, and payment of STT through SEBI-registered brokers, and that the conditions for exemption u/s 10(38) were fully satisfied. It noted that the AO had not found the documents bogus, had not examined the brokers, and had failed to establish any cash trail or accommodation entry. The order was also vitiated for denial of cross-examination. The exemption u/s 10(38) was therefore allowed. en-us Wed, 31 Jul 2024 00:00:00 +0530 Thu, 20 Nov 2025 10:36:29 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=464922 ITAT Rajkot allowed the assessee's appeal and deleted the addition made u/s 68 on alleged unexplained receipts from long-term capital gains on penny stock shares. The Tribunal held that the purchase and sale transactions were genuine, supported by bank statements, contract notes, demat records, and payment of STT through SEBI-registered brokers, and that the conditions for exemption u/s 10(38) were fully satisfied. It noted that the AO had not found the documents bogus, had not examined the brokers, and had failed to establish any cash trail or accommodation entry. The order was also vitiated for denial of cross-examination. The exemption u/s 10(38) was therefore allowed. Case-Laws Income Tax Wed, 31 Jul 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=464922