LTCG Addition Deleted: No Evidence Linking Assessee to Penny Stock Scheme

Ayush Jain Vs ITO (ITAT Indore) The Income Tax Appellate Tribunal, Indore Bench, adjudicated multiple appeals involving common issues relating to denial of exemption under Section 10(38) of the Income Tax Act on alleged Long Term Capital Gains (LTCG) arising from sale of shares of M/s Sunrise Asian Limited, along with additions under Section 68 and estimated brokerage expenses. The Assessing Officer treated the gains as unexplained cash credits, alleging that the transactions were sham and involved a penny stock used as a device to convert unaccounted income. Additions were also made on presum...