LTCG Exemption Upheld: ITAT Restores Section 10(38); Quashes Addition Based on Suspicion

Dharamendra Bhandari (HUF) Vs CIT (ITAT Delhi) Income Tax Appellate Tribunal (ITAT), Delhi Bench, has overturned an assessment order that denied Long Term Capital Gain (LTCG) exemption under Section 10(38) of the Income-tax Act, 1961, to Dharamendra Bhandari (HUF). The Tribunal’s decision, which also set aside an addition of 3% of the transaction amount as unexplained expenditure, critically examined the Income Tax Department’s reliance on general investigation reports and alleged ‘penny stock’ transactions without concrete evidence linking the assessee to price manipulatio...