Allowing the appeal of the assessee the Tribunal held that ; Capital gains from penny stocks cannot be assessed as unexplained cash credit u/s 68 if the assessee has produced documentary evidence to prove the source, identity and genuineness of the transaction and the AO has not found any fault with it. The fact that the investigation dept has alleged that there is a modus operandi of bogus LTCG scheme is not relevant if the same is not substantiated. ( ITA No. 6235/Del/2017, dt. 19.03.2018)(AY. 2014-15)
Meenu Goel v. ITO( SMC) (Delhi)(Trib) , www.itatonline.org
S. 45: Capital gains- Cash credits- Penny stocks – When the identity and genuineness of transaction is established merely because , the investigation department has alleged that there is a modus operandi of bogus Long term capital gains scheme is not relevant if the same is not substantiated [ S.10(38), 68 ]