Assessee purchased shares of a company and earned LTCG on the sale of the same. He claimed exemption of LTCG u/s 10(38) of the Act. The AO was of the opinion that the assessee had made huge profit out of said investment and therefore held that the said script was suspicious and penny stock. Accordingly, assessment was reopened on ground that the assessee had earned LTCG on sale of shares through accommodation entries, though the assessee had purchased shares directly from the company and through share transfer from another party and subsequently, sold the said shares through the stock exchange. It was noted that there were no discrepancies in documents filed by assessee claiming deductions u/s 10(38). Further, even though all the characteristics of penny stock existed, Revenue had not brought on record any materials linking assessee in any of dubious transactions relating to entry, price rigging or exit providers. Even in the SEBI report, there was no mention or reference to the involvement of assessee. It was therefore held that the impugned reopening of assessment was unjustified and LTCG claimed by assessee was legitimate (AY. 2012-13,  2013-14)