AO cannot disallow Long term capital loss on mere suspicion: ITAT allows Loss on Sale of Shares

Paramjit Gandhi Vs DCIT (ITAT Delhi) The intricacies of income tax assessments often manifest in disputes over capital gains and losses. In the case of Paramjit Gandhi vs. DCIT, recently adjudicated by the Income Tax Appellate Tribunal (ITAT) Delhi, the central issue revolved around the disallowance of long-term capital loss incurred by the assessee on the sale of shares. The tribunal’s decision shed light on the importance of substantiating claims and the need for a thorough examination by tax authorities. Background of the Case: Paramjit Gandhi, the appellant, had sold 822,500 equity s...