https://www.taxtmi.com/caselaws?id=465350 Whether LTCG from sale of listed shares was rightly treated as bogus and exemption u/s 10(38) denied turned on the absence of incriminating material and lack of statutory compliance. The ITAT held that shares, though acquired off-market, were dematerialized and credited to the DMAT promptly and there was no material showing suspension or listing non-compliance of the scrip. The AO failed to comply with mandatory s. 142(3) by not confronting material relied upon, did not specify the charging provision, and invoked s. 115BBE without establishing ingredients of ss. 68/69 etc., including enquiries on identity/creditworthiness/genuineness, which are impracticable in exchange-traded sales with routed banking receipts; the LTCG addition was deleted. Consequentially, the CIT(A)'s enhancement of presumptive commission u/s 69C was also deleted, and the appeal was allowed. en-us Wed, 20 Sep 2023 00:00:00 +0530 Tue, 16 Dec 2025 17:38:36 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=465350 Whether LTCG from sale of listed shares was rightly treated as bogus and exemption u/s 10(38) denied turned on the absence of incriminating material and lack of statutory compliance. The ITAT held that shares, though acquired off-market, were dematerialized and credited to the DMAT promptly and there was no material showing suspension or listing non-compliance of the scrip. The AO failed to comply with mandatory s. 142(3) by not confronting material relied upon, did not specify the charging provision, and invoked s. 115BBE without establishing ingredients of ss. 68/69 etc., including enquiries on identity/creditworthiness/genuineness, which are impracticable in exchange-traded sales with routed banking receipts; the LTCG addition was deleted. Consequentially, the CIT(A)'s enhancement of presumptive commission u/s 69C was also deleted, and the appeal was allowed. Case-Laws Income Tax Wed, 20 Sep 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=465350