The assessee  sold shares of Devika Proteins Limited  claimed long-term capital gain  as exempt .The Assessing Officer  treated said gains as bogus and in nature of penny stock. He made additions to the said amount under section 68. On appeal, the CIT(A) held that since shares were in the nature of old investment, they could not be treated as penny stock by any stretch of the imagination. Tribunal upheld to view taken by the CIT(A). On appeal High Court held that the genuineness of investment in the shares by the assessee was substantiated by him by producing copy of the transaction statement for the period from 1-6-2001 to 1-10-2010. The investment was made in the year 2000-01. The shares were retained for more than ten years and were sold after such a long time. These circumstances suggested that the investment was not bogus or investment made in penny stock. The shares were purchased in order to invest and not to earn exempted income by frequent trading in a short span. Order of Tribunal is affirmed .  ( AY. 2011-12 )