ITAT Deletes Addition: AO Can’t Curtail Expenditure Without Evidence of Fraud

Trak Services (P) Limited Vs ITO (ITAT Delhi) Introduction: The case of Trak Services (P) Ltd. vs. ITO (ITAT Delhi) revolves around the dispute over the calculation of Long Term Capital Gain (LTCG) on the sale of shares of M/s Axis IT&T Ltd. The Assessing Officer (AO) contested the declared LTCG, leading to a legal battle. 1. Background of the Case Trak Services (P) Ltd. declared LTCG from the sale of shares of M/s Axis IT&T Ltd. However, the AO questioned the declared sale price, arguing that the market value on the transfer date should be considered. The dispute centered around wheth...