Gujarat H C in SCA 17756/2018 Dt. 11/6/21 in case of Priti Paras Savla quashed reopning procedings beyond 4 years from end of the year in a scritized assessment as subject matter of reasons of reopning was processed for exempted LTCG alleged to be bogus.
RE K Patel
Addition u/s 10(38) on alleged bogus Long Term Capital Gain (LTCG) deleted where no further verification made by AO except solely reliance on information from investigation wing.
ITAT held that the long-term capital gain on the sale of shares of M/s. Blue Circle Services Ltd. is not a bogus capital gain as the AO has solely relied on the report of the investigation/survey team and has not carried out any further verification on the basis of documents furnished by the assessee. Similarly, the position of long-term capital gain earned on the sale of shares of M/s. Gemstone Investment Ltd. of Rs.88,41,060/- is the same as the assessee has filed all the necessary evidence before the AO and AO has failed to carry out any further investigation to prove that the long term capital gain earned by the assessee is bogus and fictitious. Consequently, the appeal of the assessee succeeds on merit also.