Assessee had earned long-term capital gains on sale of shares of a company and claimed exemption under section\u00a010(38).\u00a0 Assessing Officer received information from Investigation Wing that assessee made transaction in penny stocks and claimed exemption under section\u00a010(38). He, thus, reopened assessment. Assessing Officer opined from financial of penny stock company that there was no substantial change so as to support huge deviation of share price and that it did not have any business activity which justified huge market price of shares. The Assessing Officer disallowed exemption and made addition under section 68. Tribunal held\u00a0 that assessee had sold shares after holding same for more than seven years and proximity of time between buy and sale of shares could not be considered as an accommodation entry. Tribunal,\u00a0 held that assessee was a genuine investor who was not involved in manipulative practices. Tribunal further noted that amount of long-term capital gain was not significant. High Court affirmed the order of the Tribunal. (AY. 2011-12,\u00a0 2012-13)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 68 : Cash credits-Long term capital gains-Sale of shares-Information from Investigationn Wing-Sold shares after holding same for more than seven years-Proximity of time between buy and sale of shares could not be considered as an accommodation entry-High Court affirmed the order of Tribunal. [S. 10(38), 45, 68, 69,260A] <\/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-59246","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-fpA","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/59246","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=59246"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/59246\/revisions"}],"predecessor-version":[{"id":59247,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/59246\/revisions\/59247"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=59246"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=59246"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=59246"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}