ITAT Allows LTCG Exemption on Inherited Shares

Paresh Manubhai Desai Vs ITO (ITAT Mumbai) The Income Tax Appellate Tribunal (ITAT) in Mumbai has ruled in favor of a taxpayer, Paresh Manubhai Desai, allowing him to claim a long-term capital gains (LTCG) exemption under Section 10(38) of the Income Tax Act, 1961. The tribunal set aside a penalty that treated the sale of inherited shares as a short-term capital gain (STCG). This decision was based on the evidence presented by the assessee, which demonstrated that the shares had been held for a period of over one year, even before he inherited them. The case originated from the assessment year...