https://www.taxtmi.com/caselaws?id=765224 ITAT Delhi ruled in favor of the assessee regarding diamond sale proceeds. The tribunal held that diamonds gifted by grandfather in AY 1994-95 qualified as long-term capital assets, making gains from their sale long-term capital gains (LTCG) rather than unexplained credits under Section 68. The assessee proved diamond processing activities and legitimate sales to third parties. ITAT rejected revenue's reliance on CBDT circulars treating gains as short-term, emphasizing statutory provisions prevail over circulars. The tribunal confirmed LTCG treatment was properly offered to tax and cannot be deemed unexplained cash credits. en-us Mon, 20 Jan 2025 00:00:00 +0530 Tue, 28 Jan 2025 08:24:49 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=765224 ITAT Delhi ruled in favor of the assessee regarding diamond sale proceeds. The tribunal held that diamonds gifted by grandfather in AY 1994-95 qualified as long-term capital assets, making gains from their sale long-term capital gains (LTCG) rather than unexplained credits under Section 68. The assessee proved diamond processing activities and legitimate sales to third parties. ITAT rejected revenue's reliance on CBDT circulars treating gains as short-term, emphasizing statutory provisions prevail over circulars. The tribunal confirmed LTCG treatment was properly offered to tax and cannot be deemed unexplained cash credits. Case-Laws Income Tax Mon, 20 Jan 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=765224