ITAT Kolkata – Exemption U/s 10(38) Allowed; AO Cannot Alter Cost of Acquisition in Year of Sale

ACIT Vs Roselife Enclave LLP (ITAT Kolkata) In Roselife Enclave LLP (AY 2017-18), the AO denied exemption u/s 10(38) on LTCG from sale of listed shares by substituting the actual purchase price of ₹20/share with higher market price prevailing on dematerialization date and taxed ₹8.75 Cr as income u/s 56. The ITAT held that the shares were purchased earlier in FY 2014-15 and the purchase cost had already been examined and accepted in scrutiny assessment for AY 2015-16. The Tribunal observed that each assessment year is a separate unit and the AO cannot reopen or alter cost of acquisition in...