ITAT Surat Upholds Bogus LTCG Addition on Sunrise Asian Penny Stock, Applies ‘Human Probability’ Test

Rameshkumar Karsanbhai Patel Vs ITO (ITAT Surat) The Income Tax Appellate Tribunal dismissed the assessee’s appeal challenging the order of the Commissioner of Income-tax (Appeals), NFAC, for Assessment Year 2015-16. The dispute related to denial of exemption under Section 10(38) of the Income-tax Act on alleged long-term capital gains (LTCG) earned from sale of shares of Sunrise Asian Ltd. and consequent addition under Section 68 as unexplained cash credit. The assessee had filed a return declaring income of Rs. 6,78,620 and claimed exempt LTCG of Rs. 70,33,182 arising from sale of 15,000 e...