In the return of income assessee  claimed  long term capital gain arising from sale of shares as exempt under S. 10(38) of the Act. On the basis of information from Investigation Wing that number of penny stock companies were providing bogus entries of long-term capital gain on sale of their shares and  Kappac Pharma  Ltd. was one of those companies. AO  carried out detailed investigation and found that assessee’s transactions of sale of shares of Kappac Pharma  Ltd.  were sham.  Accordingly added amount of long-term capital gain under S.69A of the Act. Tribunal held that  the assessee had failed to discharge her burden of proof that long-term capital gain arising from sale of shares was genuine.  On other hand, enquiry conducted by SEBI was further corroborated by investigation carried out by Directorate of Investigation that Kappac Pharma Ltd. was one of such companies whose scrips had been manipulated to provide bogus long-term capital gains. Accordingly the addition made by AO is confirmed . (AY. 2014-15)