ITAT allows Section 10(38) Exemption on LTCG from Sell of Shares of Midland Polymers 

Ramesh Rikhavdas Shah Vs ACIT (ITAT Mumbai)

Income Tax Appellate Tribunal (ITAT) Mumbai ruled in favor of the assessee, Ramesh Rikhavdas Shah, setting aside the additions made by the Assessing Officer (AO) for Assessment Years (AYs) 2014-15 and 2015-16. The case involved long-term capital gains (LTCG) on the sale of shares of M/s Midland Polymers Limited, which the AO deemed to be part of a penny stock scheme. The AO treated the sale proceeds as unexplained income under Section 68 of the Income Tax Act, 1961, and also estimated commission expenses for obtaining alleged bogus gains.

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