Assessee filed its return of income claiming that long-term capital gain (LTCG) that arose on sale of shares of a company was exempt under section 10(38).Same was allowed and an assessment order was passed.  Subsequently, an information was received from Investigation Wing that during a survey/search it was found that shares sold by assessee was of penny stocks company utilised by share brokers for providing bogus accommodation entries by artificially raising price of such shares.  On basis of same, Assessing Officer issued reopening notice against assessee-He further passed a reassessment order disallowing claim of exemption LTCG under section 10(38) and making addition of said amount to assessee’s income under section 68. Tribunal held that  the  assessee had furnished all evidences in form of bills, contract notes, demat statement and bank account to prove genuineness of transactions of purchase and sale of shares and Assessing Officer had not found such documents to be false, fictitious or bogus-Transactions were supported by debit note receipt, delivery challan and share certificate duly transferred in assessee’s name, shares were sold through recognized stock exchange and assessee received consideration through proper banking channel. Prices of shares were determined by market forces and not solely on basis of financial statements. Evidences on record clearly showed that transactions of sale of shares by assessee were genuine, therefore, Assessing Officer was not justified in rejecting claim of assessee for exemption under section 10(38) and further making addition of sale proceeds of shares as undisclosed income of assessee under section 68. Tribunal also held that  since  the Assessing Officer had  issued  notice without forming an independent opinion on basis of certain tangible material that assessee’s income had escaped assessment and mechanically relied upon information received from other source, impugned reopening notice was also  quashed. (AY. 2013-14)