https://www.taxtmi.com/caselaws?id=445540 ITAT Ahmedabad allowed the assessee's appeal regarding unexplained cash credit u/s 68 and disallowance of exempted capital gain u/s 10(38). The AO found that counter-parties purchasing shares were managed by entry operators and disallowed the exemption. However, ITAT held that without specific evidence proving the assessee's collusion with entry operators, income cannot be deemed bogus based solely on modus operandi or suspicious circumstances. The assessee held shares for three years, acted in good faith, and no SEBI inquiry found wrongdoing. Revenue failed to provide cross-examination opportunity for third-party statements, violating natural justice principles. The tribunal emphasized that innocent parties should not suffer for others' wrongdoings. en-us Tue, 25 Jul 2023 00:00:00 +0530 Fri, 10 Nov 2023 08:45:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=445540 ITAT Ahmedabad allowed the assessee's appeal regarding unexplained cash credit u/s 68 and disallowance of exempted capital gain u/s 10(38). The AO found that counter-parties purchasing shares were managed by entry operators and disallowed the exemption. However, ITAT held that without specific evidence proving the assessee's collusion with entry operators, income cannot be deemed bogus based solely on modus operandi or suspicious circumstances. The assessee held shares for three years, acted in good faith, and no SEBI inquiry found wrongdoing. Revenue failed to provide cross-examination opportunity for third-party statements, violating natural justice principles. The tribunal emphasized that innocent parties should not suffer for others' wrongdoings. Case-Laws Income Tax Tue, 25 Jul 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=445540