LTCG Cannot Be Treated as Bogus Without Specific Evidence on Mere Suspicion

Pawan Kumar Kabra Vs ITO (ITAT Kolkata) ITAT Kolkata allowed Pawan Kumar Kabra’s appeal against the CIT(A)’s order, which upheld the Assessing Officer’s (AO) rejection of the assessee’s claim of long-term capital gains (LTCG) from the sale of Unno Industries Ltd. shares. The AO, relying on a general investigation report and common modus operandi observed in similar cases, concluded that the LTCG claim was bogus and added the entire sale proceeds as income, rejecting the section 10(38) exemption. The AO dismissed the evidence provided by the assessee to prove the genuine...