FIFO Prevails: ITAT Mumbai Rejects “Cherry-Picked Shares” as Tax Avoidance

Megasolis Renewable Private Limited Vs ACIT (ITAT Mumbai) FIFO Wins Over “Cherry-Picked Shares” – Mumbai ITAT Calls Selective Share Identification a “COLOURABLE DEVICE” for TAX AVOIDANCE In a strongly worded ruling, the Mumbai ITAT upheld a massive addition of ₹10.76 CRORE by rejecting the assessee’s attempt to compute capital gains through selective identification of physical share certificates instead of applying the FIFO (First-In-First-Out) method. The Tribunal held that the assessee’s method was a clear “COLOURABLE DEVICE” designed to artificially suppress taxable ...