Aggregation under TNMM prevents selective testing of intra-group services without comparable uncontrolled transactions, while appellate additional cla...
Protective assessment cannot duplicate identical receipts under competing characterisations; remote services did not establish a taxable permanent est...
Current account treatment of overseas tournament services removed most FEMA findings, but excess EEFC remittance and delayed repatriation remained bre...
Modification of bail conditions remains available through inherent jurisdiction where onerous deposits undermine justice and cannot recover disputed d...
Merchant banker regulation consolidates registration, governance, capital, reporting, outsourcing and investor-protection requirements under an update...
In this case, the Income Tax Appellate Tribunal (ITAT) examined the additions made by the Assessing Officer (AO) regarding long-term capital gains (LTCG) from share transactions treated as sham, additions u/ss 68 or 69A for unexplained credits, and addition u/s 69C for alleged unaccounted commission paid. The key points are: The claim for exemption on LTCG cannot be denied merely on suspicion or surmises regarding penny stocks, disregarding direct evidence like contract notes, banking channels, STT payment, and demat account. The AO must provide cogent corroborative material to establish unaccounted income routed back. Mere share value appreciation cannot justify treating transactions as fictitious. The shares were acquired through preferential allotment directly from the company, not brokers. Payment was through banking channels, delivery taken in demat account, held for over a year, contract notes issued, and sold on recognized stock exchange. SEBI did not declare the investee company bogus. Additions u/s 68 apply to credits in books of account, not bank statements. Section 69A addition was made solely on the presumption of redeploying undisclosed income as capital gains without independent tangible evidence of undisclosed income or bogus transactions. The 6.5% addition.
In this case, the Income Tax Appellate Tribunal (ITAT) examined the additions made by the Assessing Officer (AO) regarding long-term capital gains (LTCG) from share transactions treated as sham, additions u/ss 68 or 69A for unexplained credits, and addition u/s 69C for alleged unaccounted commission paid. The key points are: The claim for exemption on LTCG cannot be denied merely on suspicion or surmises regarding penny stocks, disregarding direct evidence like contract notes, banking channels, STT payment, and demat account. The AO must provide cogent corroborative material to establish unaccounted income routed back. Mere share value appreciation cannot justify treating transactions as fictitious. The shares were acquired through preferential allotment directly from the company, not brokers. Payment was through banking channels, delivery taken in demat account, held for over a year, contract notes issued, and sold on recognized stock exchange. SEBI did not declare the investee company bogus. Additions u/s 68 apply to credits in books of account, not bank statements. Section 69A addition was made solely on the presumption of redeploying undisclosed income as capital gains without independent tangible evidence of undisclosed income or bogus transactions. The 6.5% addition.
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 4786
Join Channel
TaxTMI 
