The assessee provided documentary evidence supporting the ...

Tax Tribunal Upholds Long-Term Capital Gains Exemption, Rejects Bogus Claim Due to Lack of Contradictory Evidence.

November 16, 2024

Case Laws Income Tax AT

The assessee provided documentary evidence supporting the purchase and subsequent sale of shares leading to long-term capital gains (LTCG). The evidence included purchase bills, bank statements showing payment, demat account reflecting share holdings, online sale through a recognized broker with contract notes, and receipt of sale proceeds in the bank account. The Assessing Officer (AO) treated the LTCG as bogus based on statements from third parties involved in providing accommodation entries, denying exemption u/s 10(38). However, the AO failed to produce any incriminating material or evidence contradicting the assessee's documents. Mere uncorroborated statements from third parties cannot render a transaction bogus without cogent contrary evidence. Following judicial precedents, the Income Tax Appellate Tribunal (ITAT) held that the claim for LTCG exemption u/s 10(38) is valid, and the addition made by the AO was deleted. Consequently, the addition u/s 69C for alleged notional commission paid was also rejected.

View Source

← Previous Next →

The assessee provided documentary evidence supporting the ...

Tax Tribunal Upholds Long-Term Capital Gains Exemption, Rejects Bogus Claim Due to Lack of Contradictory Evidence.

November 16, 2024

Case Laws Income Tax AT

You may also like:

Long term capital gain - sub-tenancy right - the assessee had a sub-tenancy right in the property and upon surrender thereof, the assessee received a sum which was...

Setting off the long term capital loss arising on sale of shares not subject to STT against long term capital gain arising from sale of Shares subjected to STT exempt...

Capital gains taxation streamlined with short-term gains on certain financial assets attracting 20% tax and long-term gains on all assets attracting 12.5% tax. Exemption...

Regarding long-term capital gain determination, indexed cost of acquisition claimed by assessee at Rs. 45 lakhs for property valued over Rs. 45 lakhs, evidenced by...

The case pertains to the exemption u/s 10(23G) for long-term capital gains arising from the purchase of shares for creating infrastructure facilities. The key points...

Rate of tax on sale of depreciable assets - STCG vs LTCG - as per Section 112 of the Act, the tax on long term capital gains on transfer of a long term capital asset is...

Exemption u/s 54EC - Assessee has not been able to raise any material contention to dispute this position. He has only submitted that the assessee wanted to invest the...

The Appellate Tribunal considered whether the sale proceeds of residential units should be treated as capital gains or business receipts. It was found that the...

Revision u/s 263 by CIT - Wrong claim of carry forward of long term capital loss - the long term capital gain, which is exempted under section 10(38) of the Act, would...

ITAT ruled on long-term capital gains from unlisted shares under India-Mauritius DTAA, specifically addressing loss carry-forward without offsetting against capital...

The assessee claimed that no capital gain was chargeable on receipt from transfer of trademark as there was no cost of acquisition. However, the tribunal held that the...

LTCG or STCG - Sale of ground floor of residential unit - whether it give rise to long term capital gains or short term capital gains - Computation from period of...

Capital Gain - Receipt of consolidated amount - where a gain from one of capital assets was a short-term capital gain while from other it was a long term capital gain,...

There was a genuine transaction of purchase and sale of shares on which assessee has earned Long Term Capital Gain, and therefore, such Long Term Capital Gain cannot be...

Bogus LTCG - Disallowing exemption u/s 10(38) - penny stock - The said company held as a penny stock company by the authorities below without any corroborative evidence...

Quick Updates: