Assessee had earned long-term capital gains on sale of shares of a company and claimed exemption under section 10(38).  Assessing Officer received information from Investigation Wing that assessee made transaction in penny stocks and claimed exemption under section 10(38). He, thus, reopened assessment. Assessing Officer opined from financial of penny stock company that there was no substantial change so as to support huge deviation of share price and that it did not have any business activity which justified huge market price of shares. The Assessing Officer disallowed exemption and made addition under section 68. Tribunal held  that assessee had sold shares after holding same for more than seven years and proximity of time between buy and sale of shares could not be considered as an accommodation entry. Tribunal,  held that assessee was a genuine investor who was not involved in manipulative practices. Tribunal further noted that amount of long-term capital gain was not significant. High Court affirmed the order of the Tribunal.  SLP filed by revenue  was  dismissed.  (AY. 2011-12,  2012-13)