ITAT denied LTCG exemption u/s 10(38) and confirmed addition u/s ...

Suspicious Share Trading Patterns Invalidate Long-Term Capital Gains Tax Exemption Claim Under Section 10(38)

May 17, 2025

Case Laws Income Tax AT

ITAT denied LTCG exemption u/s 10(38) and confirmed addition u/s 68 against the assessee. The tribunal observed no prior investment history, lack of substantive transaction evidence, and suspicious share trading pattern. Despite opportunities to validate transactions, the assessee failed to provide credible documentation. The tribunal referenced precedent involving penny stock transactions and found no genuine sale evidence beyond broker contract notes. The absence of verifiable transaction details and inconsistent trading behavior led to dismissal of the assessee's appeal, upholding the revenue's assessment and rejecting claimed long-term capital gains exemption.

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ITAT denied LTCG exemption u/s 10(38) and confirmed addition u/s ...

Suspicious Share Trading Patterns Invalidate Long-Term Capital Gains Tax Exemption Claim Under Section 10(38)

May 17, 2025

Case Laws Income Tax AT

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