ITAT upholds denial of LTCG exemption on shares of Kappac Pharma Limited

Atmiben Alipitkumar Doshi Vs ITO (ITAT Ahmedabad)

In the realm of tax jurisprudence, the decision of the Income Tax Appellate Tribunal (ITAT) in Ahmedabad in the case of Atmiben Alipitkumar Doshi Vs ITO for the Assessment Year 2014-15 emerges as a noteworthy precedent. This case delves into the intricate scrutiny of Long Term Capital Gains (LTCG) on shares, particularly focusing on transactions deemed dubious by the tax authorities. This article meticulously unpacks the tribunal’s decision, offering insights into its implications for taxpayers and the legal framework governing LTCG on shares.

Background of the Case: Atmiben Alipitkumar Doshi (the assessee) appealed against the order passed by the CIT(A)-2, Ahmedabad, which confirmed the addition of Rs. 13,47,989 as LTCG from the sale of shares of Kappac Pharma Limited. The addition was made based on allegations of non-genuine transactions, despite the assessee’s contention that the transactions were supported by valid documents and met the conditions laid down for claiming exemption under Section 10(38) of the Income Tax Act, 1961.

Tribunal’s Deliberation and Ruling

Please become a Premium member. If you are already a Premium member, login here to access the full content.