ITAT Allows LTCG Exemption on Shares due to Overreliance on Investigation Report, Absence of Enquiry & Genuineness of Transactions

Smt. Karuna Garg Vs ITO (ITAT Delhi)

The Income Tax Appellate Tribunal (ITAT) Delhi has delivered its judgment in the case of Smt. Karuna Garg vs ITO. The matter revolved around the treatment of Long-Term Capital Gains (LTCG) claimed as exempt under Section 10(38) of the Income Tax Act, 1961, in relation to the sale of shares alleged to involve penny stocks. This decision sheds light on procedural shortcomings and evidentiary expectations in scrutiny assessments.

Background of the Case

The appellant, Smt. Karuna Garg, declared LTCG from the

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