Manan Arati Patel vs ITO, Ward- 3(3)(2), Ahmedabad

Parties Involved

Facts Summary

The Assessee, Manan Arati Patel, filed an appeal against the order passed by the National Faceless Appeal Centre (NFAC), Delhi, which partly allowed the appeal against the Assessment Order passed under Section 143(3) read with Section 144B of the Income Tax Act, 1961 for the Assessment Year 2022-2023. The Assessee challenged the treatment of the sales consideration received on the sale of shares of Foodlink Services India Pvt. Ltd. and Vini Cosmetics Private Limited as unexplained cash credit under Section 68 of the Income Tax Act, 1961. The Assessee also challenged the disallowance of the cost of acquisition of such shares and the addition under Section 68 towards the exempt income of profit from the partnership firm and income from Alpha Alternative MSAR. The Tribunal allowed the appeal and directed the Assessing Officer to allow the benefit of Long-Term Capital Loss (LTCL) and the deduction for the cost of acquisition of shares as claimed by the Assessee.…

Legal Issues

• 1. Treatment of sales consideration as unexplained cash credit under Section 68
• 2. Disallowance of cost of acquisition of shares
• 3. Addition under Section 68 for exempt income

Judgment Outcome

Decided in favour of Assessee.

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