The assessee claimed exemption in respect of sale of long term capital gains in respect of VAS Infrastructures Ltd.  The Assessing held that  the assessee carried out sale transactions in penny stock scrip and there was a report from Dy. Director (Inv.), Mumbai that there was manipulation of prices in respect of penny stock companies. He denied exemption under section 10(38) and added same under section 68 as unaccounted cash deposit. On appeal the Tribunal held that the  said scrip was not black listed by SEBI at relevant period and brokers details and other relevant documents were filed and on these transactions assessee had paid STT. Assessee purchase share online through various brokers and payments made to brokers were reflected in bank account.  The Assessing Officer had not given any detailed finding as to how assessee was dealing with penny stock. Accordingly the  Assessing Officer is  not right in disallowing claim of exempt income under section 10(38) in making addition under section 68  of the Act. (AY. 2011-12)