No LTCG Exemption on Sale of Shares if Purchase was Bogus: ITAT Mumbai

Ratnakar M. Pujari Vs ITO (ITAT Mumbai) The Income Tax Appellate Tribunal (ITAT), Mumbai Bench, dismissed an appeal filed by assessee Ratnakar M. Pujari for the assessment year 2006-07, thereby upholding the disallowance of his claim for tax-exempt long-term capital gains (LTCG) under Section 10(38) of the Income Tax Act, 1961. The case involved gains allegedly arising from the sale of shares of M/s Shiv Om Investment and Consultancy Limited, identified by the Revenue as a penny stock company. The assessment proceedings for AY 2006-07 were initiated through reassessment under Section 147/148, ...