2020 (4) TMI 161 - ITAT KOLKATA

Addition u/s 68 - Bogus LTCG - penny stocks - HELD THAT:- Documents furnished by the assessee and the AO having not found any defects in the documents, assessee has discharged the onus upon him to make the claim of LTCG on the sale of scrip of M/s. EIL. Assessee after purchase of shares have kept the same in the dematerialized format for more than one year and transactions happened through banking channel and both the purchase and sale happened through on line and the STT having been paid during purchase as well as the sale of the scrip, the question of denying exemption u/s. 10(38) does not arise.

As relying on JAGMOHAN AGARWAL VERSUS ASSISTANT COMMISSIONER OF INCOME-TAX, CIRCLE-35, KOLKATA [2018 (9) TMI 416 - ITAT KOLKATA] allow the claim of LTCG and consequently the claim of that amount as exempt u/s. 10(38) of the Act. - Decided in favour of assessee.