Assistant Commissioner Of Income Tax, Circle – 20(1) Vs. Shri Keshavji Nongha Shah

Parties Involved

Facts Summary

Shri Keshavji Nongha Shah purchased 2 lakh shares of M/s. Global Infratech & Finance Ltd. on 12.06.2012. The shares were split in the ratio of 1:10 on 13.12.2012, resulting in Shah being entitled to 20 lakh shares. From 2nd May 2014 to 11th July 2014, Shah sold 1212000 shares for a total amount of Rs.3,18,41,259/-. The Assessing Officer disallowed Shah's claim of capital gain exemption under section 10(38) of the Income Tax Act, 1961, adding the gain to Shah's taxable income under section 68 of the Act. Shah appealed this decision to the Commissioner of Income Tax (Appeals), who deleted the addition made by the Assessing Officer. The Revenue Department then appealed to the Income Tax Appellate Tribunal.…

Legal Issues

• 1. Whether the addition made by the Assessing Officer to the taxable income of the assessee is justified.
• 2. Whether the Commissioner of Income Tax (Appeals) correctly deleted the addition made by the Assessing Officer.

Judgment Outcome

Decided in favour of Partly Assessee / Partly Revenue.

Precedents Relied Upon

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