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 the year of sale when the transaction stood accepted in the year of purchase. Since documentary evidence supported the original cost and LTCG exemption conditions were satisfied, denial of exemption and addition u/s 56 were unsustainable. Accordingly, Revenue’s appeal was dismissed and exemption u/s 10(38) was upheld.
FULL TEXT OF THE ORDER OF ITAT KOLKATA
This is an appeal preferred by the Revenue against the order of the National Faceless Appeal Centre, Delhi (hereinafter referred to as the “Ld. CIT(A)”] dated 04.06.2025 for the AY 2017-18.
2. The Revenue has challenged the order of ld. CIT (A) deleting the addition of Rs.8,75,30,700/- as made by the Ld. AO by denying the exemption claimed by the assessee u/s 10(38) of the Act on sale of listed shares of M/s Skipper Limited.
