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Assessee's Appeal Granted, Gains Treated as Long-Term Capital Gains The Tribunal allowed the appeal of the assessee, directing the Assessing Officer to consider the gains as long term capital gains in accordance with the ...
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Assessee's Appeal Granted, Gains Treated as Long-Term Capital Gains
The Tribunal allowed the appeal of the assessee, directing the Assessing Officer to consider the gains as long term capital gains in accordance with the provisions of the law.
Issues involved: The issues involved in the judgment are related to the denial of the claim of long term capital gain and the addition of undisclosed income by the Assessing Officer.
Details of the Judgment:
Issue 1: Denial of long term capital gain claim The appellant challenged the order of the NFAC confirming the assessment order denying the claim of long term capital gain and adding Rs. 80,32,765 as undisclosed income. The Tribunal directed the Assessing Officer to pass a fresh order after necessary inquiries and providing an opportunity to the assessee. The Assessing Officer once again dismissed the claim of long term capital gains, which was confirmed by the ld. CIT(A).
Issue 2: Payment date discrepancy The dispute revolved around the fact that although the shares were purchased on specific dates, the payments were made on different dates. The Revenue questioned the acceptance of payments by brokers much after the date of purchase, raising concerns about the payment dates. The Tribunal clarified that the law does not require the performance of an impossible act and highlighted that dematerialized shares do not have distinctive numbers. The Tribunal directed the Assessing Officer to consider the gains as long term capital gains based on the contract notes and financial accounts reflecting the purchases and sales.
Conclusion: The Tribunal allowed the appeal of the assessee, directing the Assessing Officer to consider the gains as long term capital gains in accordance with the provisions of the law. The judgment was pronounced on 24.05.2023.
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