Case Law Details
Shantaben Fathechand Mehta Vs ITO (ITAT Mumbai)
Introduction: The recent case of Shantaben Fathechand Mehta Vs ITO (ITAT Mumbai) highlights the complexities surrounding share purchase discrepancies and tax assessment. The Assessee’s declaration of income faced scrutiny due to missing details regarding the purchase of shares. This article delves into the proceedings, analysis, and outcome of the case.
Analysis: The Assessee declared income, including a short-term capital gain from the sale of shares. However, the Assessing Officer (AO) raised concerns about the lack of documentation regarding the purchase of these shares. Despite the Assessee’s efforts to provide relevant information, the AO suspected foul play and disallowed a portion of the claimed purchase price, treating it as bogus income.
The Assessee contested this decision before the Commissioner of Income-tax (Appeals), asserting the legitimacy of the share purchase. However, the appeal was unsuccessful, leading to further litigation.
During the proceedings, it emerged that the Assessee had indeed purchased shares, but the documentation was not adequately presented before the authorities. Crucially, the Assessee possessed share certificates validating the purchase, which were not provided earlier due to their alleged untraceability.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
Author Bio
