ITAT denies Exemption u/s 10(38) for LTCG on Share Sale, Citing alleged Conversion of Unaccounted Money

The Income Tax Appellate Tribunal (ITAT) denied an exemption under Section 10(38) of the Income Tax Act for long-term capital gains on share sales. The Tribunal found that the assessee had allegedly converted unaccounted money into shares through bogus transactions. As a result, the claimed exemption was denied, citing the lack of genuine investments. This case highlights the scrutiny of transactions to prevent tax evasion through manipulated share dealings and the importance of transparent financial records.