Legitimate stock transactions cannot be disregarded as bogus capital gains based on mere suspicion.

The ITAT ruled that the assessee's long-term capital gains from share sales could not be deemed bogus based on suspicion. The Investigation Wing's report was too general, and the Assessing Officer (AO) did not prove any price manipulation in the transactions. The assessee provided valid evidence of purchase, sale, payment, and demat entries, which were not questioned. The ITAT referenced the Delhi High Court's decision in a similar case, stating that mere increases in share prices and weak company fundamentals are insufficient to discredit declared capital gains. Consequently, the addition under section 68 was removed. .....

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