LTCG Exemption Cannot Be Denied on Mere Probabilities Without Legal Evidence

Manish Kumar Baid Vs ACIT (ITAT Kolkata) Income Tax Appellate Tribunal (ITAT), Kolkata, has ruled in favor of Manish Kumar Baid, setting aside the assessment order passed by the Assistant Commissioner of Income Tax (ACIT). The tribunal found that the Assessing Officer (AO) incorrectly rejected the assessee’s claim for exemption on long-term capital gains (LTCG) arising from the sale of shares. The ITAT held that the AO’s decision was based on unsubstantiated theories and probabilities rather than concrete legal evidence implicating the assessee in any wrongdoing. The case revolved ...