Assessee filed its return of income claiming exemption of long-term capital gains on sale of shares under section 10(38).  Assessing Officer disallowed exemption claimed by assessee on ground that said shares were penny stocks used for generating bogus long-term capital gains. Tribunal held that the  shares of company in which assessee had invested did not appear in AIR report of revenue which related to trading in penny stock. Further, name of alleged company did not appear in list of 331 suspended companies and no adverse inference was drawn by SEBI. On appeal dismissing the appeal of the Revenue the Court  up held the order of the Tribunal.(AY. 2013-2014)