https://www.taxtmi.com/highlights?id=85240 ITAT ruled in favor of taxpayer regarding treatment of gains from diamond sales. Assessee received rough diamonds as gift from grandfather in AY 1994-95, which were later processed and sold. The Tribunal determined the period of holding should be calculated from gift receipt date, qualifying the assets as long-term capital assets. Despite conflicting CBDT circulars, ITAT held that statutory provisions prevail over administrative circulars. The gains were properly characterized as Long Term Capital Gains (LTCG) u/s 2(42A) of Income Tax Act, rejecting revenue's attempt to treat proceeds as unexplained cash credits u/s 68. The documented chain of possession, processing, and sale established legitimate transaction basis, negating revenue's unexplained credit allegations. en-us Tue, 28 Jan 2025 08:24:49 +0530 Tue, 28 Jan 2025 08:24:50 +0530 TaxTMI RSS Generator https://www.taxtmi.com/highlights?id=85240 ITAT ruled in favor of taxpayer regarding treatment of gains from diamond sales. Assessee received rough diamonds as gift from grandfather in AY 1994-95, which were later processed and sold. The Tribunal determined the period of holding should be calculated from gift receipt date, qualifying the assets as long-term capital assets. Despite conflicting CBDT circulars, ITAT held that statutory provisions prevail over administrative circulars. The gains were properly characterized as Long Term Capital Gains (LTCG) u/s 2(42A) of Income Tax Act, rejecting revenue's attempt to treat proceeds as unexplained cash credits u/s 68. The documented chain of possession, processing, and sale established legitimate transaction basis, negating revenue's unexplained credit allegations. Highlights Income Tax Tue, 28 Jan 2025 08:24:49 +0530 https://www.taxtmi.com/highlights?id=85240