Assessee claimed exemption under section 10(38) in respect of long-term capital gain (LTCG) earned on sale of shares of Appu Marketing and Manufacturing Ltd, Now  Ejecta Marketing Ltd. Assessing Officer reopened assessee’s case under section 147 on the ground that LTCG was essentially unexplained income of assessee. The CIT(A) affirmed the order of the Assessing Officer. On appeal, the Tribunal held that the assessee had effected the sale of shares through a registered stockbroker and copies of contract notes were available on record. No independent enquiry had been conducted by the Assessing Officer to establish that the persons to whom the assessee had sold shares were essentially exit providers. Further, though, as per the direction of SEBI, BSE had imposed restrictions on the trading of shares of the company, however, subsequently, trading in shares was allowed. In fact, the assessee had earned LTCG on the sale of shares and cannot be treated as accommodation entries. Addition was deleted on the merits. (AY. 2015-16, 2016-17)