The ITAT Mumbai ruled on the reopening of assessment u/s 147 ...

Reopening of assessment u/s 147 beyond 4 years quashed. Addition u/s 68 not justified. Assessee provided documents to support claim.

Case Laws     Income Tax

June 4, 2024

The ITAT Mumbai ruled on the reopening of assessment u/s 147 beyond four years and disallowance of deduction u/s 10(38) for alleged bogus LTCG. The Tribunal held that as the Assessee had fully disclosed material facts, the reopening was unjustified. Regarding addition u/s 68 for shares purchased off-market and later sold online, the Tribunal found no evidence of wrongdoing by the Assessee or the broker. The Assessee provided relevant documents and the AO did not question their authenticity. Citing a precedent, the Tribunal allowed the deduction u/s 10(38) as the shares were legitimately traded on the stock exchange. The decision favored the Assessee.

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