Rajasthan HC upheld deletion of Addition of LTCG on Sale of Share of Kappac Pharma

PCIT Vs Shri Arnav Goyal (Rajasthan High Court)

In a significant ruling, the Rajasthan High Court upheld the decision of the Income Tax Appellate Tribunal (ITAT), which deleted the additions made by the Assessing Officer (AO) concerning the capital gains from the sale of shares. The case, titled “Principal Commissioner of Income Tax (PCIT) Vs Shri Arnav Goyal,” revolves around the allegations of bogus long-term capital gains and the associated undisclosed expenditures. The Income Tax Department’s appeal against the ITAT’s decision was dismissed, reaffirming the tribunal’s findings.

Issues Raised:

1. Whether the Tribunal was justified in deleting the addition of Rs.31,70,080/- under Section 68 of the Income Tax Act, pertaining to alleged bogus long term capital gains.

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