Addition of bogus LTCG disallowed due to off-market purchase in cash. Exemption denied as payments were non-verifiable. Upheld by ITAT.

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....The Appellate Tribunal upheld the addition u/s 68 for alleged bogus Long Term Capital Gains due to off-market cash purchase of shares. The taxpayer's claim for deduction u/s 10(38) was disallowed as the purchase payments lacked verifiable proof through normal banking channels. Despite holding the shares for over a year and paying STT on sale, the exemption was denied due to unverifiable cash purchases. The Tribunal found the transactions suspicious, considering the lack of credible documentation and the taxpayer's atypical share investment behavior. The decision affirmed the CIT(A)'s ruling against the taxpayer, emphasizing the need for proper sourcing evidence in such cases.....