ITAT upheld the disallowance of LTCG exemption claimed under ...

Long-Term Capital Gains Exemption Under Section 10(38) Denied for Penny Stock Transactions Deemed Predetermined Scheme for Unaccounted Income (38)

March 28, 2025

Case Laws Income Tax AT

ITAT upheld the disallowance of LTCG exemption claimed under section 10(38), determining the transactions constituted a predetermined scheme to introduce unaccounted income. The Tribunal found the assessee's 400% profit in 13 months from penny stock NCL Research was not genuine, noting the suspicious pattern of dormant scrip suddenly appreciating despite poor financial parameters. The synchronized buying and selling, coupled with investigations by Income Tax authorities and SEBI, established the transactions as sham arrangements. The Tribunal emphasized that documentation like contract notes and banking channel evidence alone cannot establish genuineness when market forces don't justify the price increase. The CIT(A)'s findings regarding price manipulation were affirmed.

View Source

← Previous Next →

ITAT upheld the disallowance of LTCG exemption claimed under ...

Long-Term Capital Gains Exemption Under Section 10(38) Denied for Penny Stock Transactions Deemed Predetermined Scheme for Unaccounted Income (38)

March 28, 2025

Case Laws Income Tax AT

You may also like:

Bogus LTCG - Disallowing exemption u/s 10(38) - penny stock - The said company held as a penny stock company by the authorities below without any corroborative evidence...

Bogus LTCG - penny stock purchases - genuineness of claim of exempt income u/s 10(38) of the Act from Long Term Capital Gain - Since we have held the transaction of Long...

Setting off the long term capital loss arising on sale of shares not subject to STT against long term capital gain arising from sale of Shares subjected to STT exempt...

There was a genuine transaction of purchase and sale of shares on which assessee has earned Long Term Capital Gain, and therefore, such Long Term Capital Gain cannot be...

Revision u/s 263 by CIT - Wrong claim of carry forward of long term capital loss - the long term capital gain, which is exempted under section 10(38) of the Act, would...

Rate of tax on sale of depreciable assets - STCG vs LTCG - as per Section 112 of the Act, the tax on long term capital gains on transfer of a long term capital asset is...

Exemption u/s 10(38) - bogus LTCG on purchase and sale of shares - disallowance brokerage expense - penny stock transaction - ssessee has successfully proved the...

Regarding long-term capital gain determination, indexed cost of acquisition claimed by assessee at Rs. 45 lakhs for property valued over Rs. 45 lakhs, evidenced by...

Capital Gain - Receipt of consolidated amount - where a gain from one of capital assets was a short-term capital gain while from other it was a long term capital gain,...

Addition u/s 68 - Penny stock purchases - addition on account of Long Term Capital Gains (LTCG) which the assessee derived from sale of scrip - exemption u/s 10(38)...

Set off of brought forward business loss and brought forward long term capital loss - capital gains computed u/s 50 is be deemed to be short-term capital gains and this...

Bogus capital gain on sale of long term shares - exemption u/s 10(38) denied - The holding of the shares by the assessee cannot be doubted and the finding of the AO is...

The assessee had demonstrated the genuineness of the share transaction resulting in long-term capital gains, which were claimed as exempt u/s 10(38). The Revenue...

Correct head of income - business profit or Long Term Capital Gains - GPA was restricted to the extent of builder’s right at 73.33% of the land and that portion allotted...

LTCG or STCG - Sale of ground floor of residential unit - whether it give rise to long term capital gains or short term capital gains - Computation from period of...

Quick Updates: