The ITAT resolved a taxation dispute concerning option money and...

The ITAT resolved a taxation dispute concerning option money and capital gains from a joint venture stake sale. The Tribunal directed the AO to compute capital gains based on prior judicial precedents, which established the option money as a capital receipt. The decision affirmed the assessee's position that the 940 crore receipt should be treated as capital gains rather than business income. The Tribunal further instructed the AO to allow deductions for capitalized interest and professional expenses related to share acquisition, subject to verification. The ruling predominantly favored the assessee by mandating capital gains treatment and rejecting the revenue department's business income classification.

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