ITAT Sets Aside Section 40A Addition as Share Investment Was Reflected as Capital Asset

Ameya Perfomatt Finserv Private Limited Vs DCIT (ITAT Ahmedabad) The Income Tax Appellate Tribunal (ITAT), Ahmedabad, considered an appeal against the confirmation of an addition of ₹1,14,75,000 made under Section 40A(2)(a) of the Income-tax Act for Assessment Year 2014-15. The assessee, a company engaged in financial services and investment activities, had filed a return declaring nil income. During assessment proceedings, the Assessing Officer noted that the assessee had issued equity shares worth ₹1.22 crore to its associate concern and, in turn, acquired 67,500 unquoted shares of anoth...