Concessional penalty for search-disclosed unreconciled jewellery applies where substantive disclosure conditions are met despite omission from origina...
The ITAT disallowed the short-term capital loss claimed on the sale of commercial FSI rights and 4659 shares, rejecting the assessee's contention of distress sale due to market slowdown. The tribunal found the transactions lacked commercial substance, noting neither purchase nor sale consideration was timely paid or received, and the buyers lacked financial capacity, undermining the genuineness of the dealings. Additionally, the existence of a pending PIL against the company whose shares were sold was insufficient to establish adverse impact on business prospects, as no official action affecting the assessee was demonstrated. Consequently, the ITAT upheld the disallowance of the capital loss and dismissed the appeal.
The ITAT disallowed the short-term capital loss claimed on the sale of commercial FSI rights and 4659 shares, rejecting the assessee's contention of distress sale due to market slowdown. The tribunal found the transactions lacked commercial substance, noting neither purchase nor sale consideration was timely paid or received, and the buyers lacked financial capacity, undermining the genuineness of the dealings. Additionally, the existence of a pending PIL against the company whose shares were sold was insufficient to establish adverse impact on business prospects, as no official action affecting the assessee was demonstrated. Consequently, the ITAT upheld the disallowance of the capital loss and dismissed the appeal.
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