{"id":48950,"date":"2024-12-17T13:02:20","date_gmt":"2024-12-17T07:32:20","guid":{"rendered":"https:\/\/itatonline.org\/digest\/raunaq-prakash-jain-v-ito-jodhpur-trib-www-itatonline-org-2024-169-taxmann-com-298-jodhpur-trib\/"},"modified":"2025-07-22T16:05:21","modified_gmt":"2025-07-22T10:35:21","slug":"raunaq-prakash-jain-v-ito-jodhpur-trib-www-itatonline-org-2024-169-taxmann-com-298-jodhpur-trib","status":"publish","type":"post","link":"https:\/\/itatonline.org\/digest\/raunaq-prakash-jain-v-ito-jodhpur-trib-www-itatonline-org-2024-169-taxmann-com-298-jodhpur-trib\/","title":{"rendered":"Raunaq Prakash Jain v. ITO ( Jodhpur )( Trib) www.itatonline .org .(2024) 169 taxmann.com 298 \/\/( 2025) 233 TTJ 176 ( Jodhpur )( Trib)  ( Jodhpur )( Trib)"},"content":{"rendered":"<p>The assessee \u00a0is an individual who is a salaried employee has purchased Bitcoin (crypto currency) during financial year 2015-16 and sold it during financial year 2020-21. He invested sale consideration in the purchase of property. The assessee filed return declaring long-term capital gain on sale of Bitcoin and also claimed exemption under section 54F. The Assessing Officer held that the crypto currency is \u00a0not a capital asset under section 2(14) and made it taxable under section 56 as the income from other sources. On appeal, the Commissioner (Appeals) \u00a0held that Crypto Currency (Bitcoins) is \u00a0not an asset as per section 2(14), hence, the transfer as per section 2(47) as Long-Term Capital Gain is \u00a0not applicable . Accordingly affirmed the order of the Assessing Officer . \u00a0On appeal the Tribunal held that the assesseee \u00a0<strong>\u00a0<\/strong>is \u00a0not regularly dealing in purchase\/sale of shares\/ crypto currency .His intention was to hold for long term capital gain which was more evident from fact that assessee held crypto currency for more than 3 years . Finance Act, 2022 w.e.f. 01.04.2022, section 2(47A) had been inserted thereby Virtual Digital Asset meaning is \u00a0assigned and that included underlying assets Bitcoins . Since crypto currency is \u00a0specifically incorporated in statute as an asset, it means that even before 1-4-2022, crypto currency was an asset and gain on sale of crypto currency had to be taxed under head capital gain and not under head income from other sources .\u00a0 Accordingly, claim of deduction under section 54F is\u00a0\u00a0 allowable \u00a0to the \u00a0assessee. Tribunal also held that \u00a0when there are two views are possible the view which is favorable to the assessee be considered \u00a0referred , CIT\u00a0v.\u00a0Vegetable Products Ltd (1973 ) 88 ITR 1992 ( SC) .\u00a0[1973] \u00a0Chief Commissioner of CGST\u00a0v.\u00a0 Safari Retreats Pvt. Ltd. Civil Appeal No.\u00a02948 of 2023 order dt. 03.10.2024 at page 32, para 25(d) \u00a0. ( AY. 2021 -22 ) ( ITA No. 1 of 2024 (Jodh ) dt.28 -11 -2024 )<\/p>\n","protected":false},"excerpt":{"rendered":"<p> S. 45 : Capital gains &#8211; Crypto currency \u2013Bitcoin- Virtual Digital Asset &#8211;  Held  for more than 3 years (Thirty six months ) \u2013 Property of any kind &#8211; Taxable as capital gains \u2013 Not as income from other sources \u2013 Entitle to claim exemption under Section 54F of the Act &#8211; Finance Act, 2022 w.e.f. 01.04.2022, Section 2(47A) had been inserted thereby Virtual Digital Asset meaning was assigned and that included underlying assets Bitcoins \u2013 When there are two views are possible the view which is favorable to the assessee be considered .    [ S.2(14), 2(47),2(47A), 54F ,  56(2)(x), 115BBH, 194S, Foreign Exchange Management Act, 1999.2(h),2(m), 2(q)]  .<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-48950","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-cJw","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/48950","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=48950"}],"version-history":[{"count":2,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/48950\/revisions"}],"predecessor-version":[{"id":55500,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/48950\/revisions\/55500"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=48950"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=48950"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=48950"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}