In a recent judgment, the Income Tax Appellate Tribunal (ITAT) Ranchi has ruled in favor of the assessee who duly furnished all documentary evidence in support of LTCG.
The case pertains to an assessee who claimed exemption under section 10(38) of the Income-Tax Act, 1961, for the long-term capital gain (LTCG) earned from the sale of shares during the assessment year 2013-14.
The Assessing Officer (AO) had treated the LTCG as bogus, representing undisclosed money of the assessee introduced in the form of exempt income. However, the assessee had furnished various relevant documentary evidence in support of the transaction, which had not been rebutted.
This included purchase bills, bank statement showing payments, confirmation by the seller of the purchase of shares, receipt of sale proceeds in the bank account from the Stock Exchange through a registered member, and the Securities Transaction Tax (STT) paid certificate.
The assessee’s purchase of shares was not doubted, but the sale was disputed in the current year to be bogus. Given the evidence and material provided by the assessee, which had not been rebutted, the ITAT ruled in favor of the assessee.
The addition made towards LTCG on the sale of shares by the AO, treating it as unexplained income, was deleted.
Title: Ritu Udaipuria vs. Income-tax Officer
Court: ITAT Ranch
Dated:29-Feb-2024
Abhishek Raja "Ram"
@abhishekrajaram
MEC, STBA Delhi || Speaker and Author on GST. Life dedicated towards Tax and Economic Reforms & Simplification