During relevant year the  assessee sold said shares resulting in substantial amount of LTCG in a short span and same was claimed as exempt. Assessing Officer treated said capital gains as bogus receipts under section 68 on ground that assessee made unrealistic non-taxable capital gains on a very small investment that too in a short period of just 17 months by indulging in transactions of penny stocks. Tribunal held that the   Assessee purchased shares in cash and not through banking channels and were held in pool account of broker for 17 months. On perusal of assessee’s Demat account it was observed that shares were credited in said account after a period of 17 months just before date of sale. Accordingly the transactions could not be said to be genuine and Assessing Officer was justified in treating LTCG as bogus receipts under section 68 of the Act. Since transactions related to sale of shares could not be said to be genuine, Assessing Officer was justified in disallowing expenditure incurred in paying commission by holding that same was with respect to arranging bogus LTCG. (AY. 2014-15)