Penny Stock? Prove It First!” – ITAT Slams Assumptions, Accepts LTCG as 100% Genuine

Nishant Parekh Vs ITO (ITAT Rajkot) In this case, Assessee (legal heir of late Mina Parekh) had claimed exemption u/s 10(38) on long-term capital gains (LTCG) arising from sale of shares of PS IT Infrastructure & Services Ltd. (formerly Parag Shilpa Investments Ltd.). AO rejected the claim & treated the entire sale proceeds of ₹3.28 crore as unexplained cash credit u/s 68, further taxing it at 30% u/s 115BBE. AO relied on generic allegations of penny stock scam & price manipulation & denied Assessee’s request for cross-examination of alleged hawala operator. CIT(A) upheld t...