Addition for LTCG merely based on 3rd Party statement without any corroborative material is not sustainable

Kalpana Mukesh Ruia Vs DCIT (ITAT Mumbai)

As regards the issue of additions on merits for the bogus long-term capital gain (LTCG), we note that the same is based upon the modus operandi of earning bogus long-term capital gain in general mentioned by the assessing officer. It is further more based upon the statements obtained upon survey. Furthermore it is based upon Assessing Officer’s analysis of the impugned companies financials wherein the assessing officer is of the opinion that the increase in value is unjustified. Fu

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