Reopening Assessment for Bogus LTCG/STCG from Shell Company Valid: Calcutta HC

PCIT Vs Event Developers Pvt. Ltd. (Calcutta High Court) Calcutta High Court has overturned a decision by the Income Tax Appellate Tribunal (ITAT), ruling in favor of the revenue in the case of PCIT Vs Event Developers Pvt. Ltd. The court held that the reopening of an assessment under Sections 143 and 147 of the Income Tax Act, 1961, was valid when a company received a cash credit from a suspected “shell company” providing bogus Long Term Capital Gains (LTCG) or Short Term Capital Gains (STCG). The appeal, filed by the revenue under Section 260A of the Income Tax Act, 1961, challen...