Assessee had sold shares and claimed exemption under section 10(38) of the Act.\u00a0 Assessing Officer made an addition of same as unexplained cash credit under section 68. Order of AO is up held by the CIT(A)). On appeal the Tribunal held that addition cannot be made\u00a0 solely\u00a0 on premise of alleged price rigging in PMC Fin Corp script. The shares were sold through recognized stock exchange\u00a0 through D-Mat and STT was also paid. The Tribunal held that\u00a0 purchasing shares from the stock exchange platform is not unlawful and continuous buying of shares at increased price does not contravene any provisions of SEBI laws. \u00a0Denial of exemption is not justified. Followed, PCIT v. Dipansu Mohapatra\u00a0 (2024) 298 Taxman 194\/ 463 ITR 681 (SC) (AY. 2013-14)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 68 : Cash credits-Sale of shares-Penny stock-PMC Fin Corp script-Long term capital gains-D-Mat account-Sale through recognized stock exchange-STT paid-Purchasing shares from the stock exchange platform is not unlawful and continuous buying of shares at increased price does not contravene any provisions of SEBI laws-Denial of exemption is not valid. [S.10(38), 45] <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-49829","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-cXH","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/49829","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=49829"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/49829\/revisions"}],"predecessor-version":[{"id":49830,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/49829\/revisions\/49830"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=49829"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=49829"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=49829"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}