Demat Share Deal Genuine: Why ITAT Accepted LTCG Despite ‘Penny Stock’ Allegation

Sameer Shah (HUF) Vs ITO (ITAT Rajkot)

ITAT Rajkot Allows Tuni Textile LTCG: Genuine Demat-Based Share Deal Beats “Penny Stock” Allegation – Addition Deleted in Full

In this case, Assessee (Sameer Shah HUF) claimed exemption of Long-Term Capital Gain u/s 10(38) on sale of shares of Tuni Textile Ltd. for AY 2013-14. AO reopened the assessment u/s 147, treated the LTCG as bogus penny stock accommodation entry, & made an addition of ₹39,90,501 u/s 68, without disproving the documents furnished by Assessee. NFAC/CIT(A) upheld the addition relying on general allegatio

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