Case Law Details
Rajesh Lakhmshi Nisar Vs ITO – 32(3)(1) (ITAT Mumbai)
Introduction: The case of Rajesh Lakhmshi Nisar vs. Income Tax Officer (ITO), heard at the Income Tax Appellate Tribunal (ITAT) in Mumbai, revolves around the dispute regarding the treatment of long-term capital gains (LTCG) on the sale of shares. The taxpayer contested the addition of LTCG by the assessing officer, claiming that the transactions were genuine and substantiated with evidence.
Detailed Analysis:
1. Background: The taxpayer, engaged in business activities, initially disclosed income from various sources in the return filed for Assessment Year (A.Y) 2014-15. However, upon scrutiny, the assessing officer questioned the legitimacy of LTCG claimed on the sale of shares of M/s Cressenda Solutions Ltd (‘CSL’).
2. Assessment Proceedings: The assessing officer requested details regarding the shares’ purchase, mode of payment, share certificates, broker details, contract notes, dematerialization details, and bank transactions. Despite the taxpayer’s submission of various documents supporting the transactions, the assessing officer remained unconvinced and treated the LTCG as non-genuine, invoking section 68 of the Income Tax Act.
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