ITAT Mumbai taxed LTCG from Penny Stock ‘Essar (India) Ltd’

Shanno Mohammed Yusuf Warsi Vs ITO (ITAT Mumbai) The case of Shanno Mohammed Yusuf Warsi Vs Income Tax Officer (ITO) at the Income Tax Appellate Tribunal (ITAT) Mumbai revolves around the taxation of long-term capital gains (LTCG) from penny stock transactions, specifically involving shares of Essar (India) Ltd. The central question is whether the assessee abused the provisions of Section 10(38) of the Income Tax Act, which exempts LTCG from taxation under certain conditions. Section 10(38) initially provided an exemption for LTCG arising from the sale of shares held for more than one year on ...