ITAT upheld Section 68 addition of LTCG in Penny Shares

Vinay Kumar Dhingra (HUF) Vs ITO (ITAT Delhi) Contention of Assessee:  1. The assessee fulfills all conditions specified u/s. 10(38) 2. Though the purchase of securities are off market, the sale of shares was made online on which STT has been duly paid. 3. The shares were held for approximately 18 to 20 months 4. Copy of d-mat statement, copy of contract notes evidencing payment of STT on sale of shares have been provided. 5. The assessee has proved the identity of the party, the genuineness of the transaction and the credit worthiness and therefore, section 68 is not applicable. ...