The assessee claimed exemption under section 10(38) in respect of long-term capital gains arising from sale of shares of a penny-stock company. The Tribunal found that the scrip had witnessed an abnormal and unjustified rise in price followed by a steep fall, the trading pattern was synchronised, and the investigation conducted by the Directorate of Income-tax and SEBI established manipulation by entry operators. The financial position of the company did not justify such appreciation in value. Mere production of contract notes, demat statements, banking records and payment of Securities Transaction Tax could not establish the genuineness of the transactions in the absence of any explanation for the abnormal price movement. The claim of exemption under section 10(38) was therefore rejected. (AY. 2013-14).<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 68 : Cash credits- Long-term capital gains-Penny stock-NCL research-Kolkata Investigation report-Statement of persons involved- Artificial rise in share price-Transactions held non-genuine-Exemption denied.[S.10(38), 45, 132, 147]<\/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_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[21],"tags":[],"class_list":["post-63686","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-gzc","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/63686","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=63686"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/63686\/revisions"}],"predecessor-version":[{"id":63687,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/63686\/revisions\/63687"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=63686"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=63686"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=63686"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}