Shri Aditya Mundada, Warangal. Vs. The Income Tax Officer, Ward – 5, Warangal. and Purushotham Mundada (HUF), Warangal. Vs. The Assistant Commissioner of Income Tax, Circle – 1, Hyderabad.
Parties Involved
Facts Summary
During the relevant assessment year 2014-15, Shri Aditya Mundada sold shares of M/s. Kailash Auto Finance Limited for a sale consideration of Rs.1,52,21,982/- and claimed the entire long term capital gain as exempt u/s 10(38) of the Act. The Assessing Officer treated the entire sale consideration as unexplained cash credit u/s 68 of the Act and taxed the entire sale consideration amounting to Rs.1,52,21,982/-. Similarly, Purushotham Mundada (HUF) sold shares of M/s. Kailash Auto Finance Limited for a total consideration of Rs.1,22,27,458/- and claimed long term capital gain. The Assessing Officer treated the entire sale consideration as unexplained cash credit u/s 68 of the Act and taxed the same. Both assessees appealed against the orders of the Commissioner of Income Tax (Appeals).…
Decision in favour of
Assessee
Legal Issues
- 1. Whether the entire sale consideration of shares of M/s. Kailash Auto Finance Limited should be treated as unexplained cash credit u/s 68 of the Act.
Judgment Outcome
Decided in favour of Assessee.
Precedents Relied Upon
2 precedents cited in this judgement.
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