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2019 (9) TMI 1066 - ITAT MUMBAIBogus LTCG - Penny stock transaction - denying exemption u/s. 10(38) - HELD THAT:- It is the claim of the assessee that he has earned the gain in this case where the share price off a little-known company has jumped 3800% in no time and that all documentary records are available. But there is no economic or financial justification for such astonishing jump. In identical situation wherein the enormous jump in share price in very little time without any economic or financial justification was confirmed by the ITA, the same was duly confirmed by the honourable jurisdictional High Court in the case of Sanjay B. Jain [2017 (5) TMI 983 - BOMBAY HIGH COURT] This is a classic case of penny stock transaction. Such conversion of unaccounted money through dubious method is not permitted on the touchstone of Hon'ble Supreme Court decision in the case of CIT Vs. Durga Prasad More [1971 (8) TMI 17 - Supreme Court]- Decided against assessee.
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