This document examines ITA No. 43/Del/2019 involving Rekha Maheshwari and the Income Tax Officer, Ward-55(1), New Delhi for the assessment year 2015-16. The focus is on the denial of long-term capital gains exemption under section 10(38) and the implications of section 68 on unexplained cash credits.
Rekha Maheshwari, the appellant, contested the order by the CIT(A) which confirmed the AO’s decision to disallow exemptions on long-term capital gains from sale of shares citing deeming provisions of section 68. The case highlights the challenges in proving the genuineness of transactions involving equity shares.
During the scrutiny assessment, no books were presented, and the case was decided exparte by the CIT(A) which led to a substantial addition under section 68 for unexplained cash credits. The tribunal remanded the case, emphasizing the need for procedural fairness and adequate opportunity for the appellant to substantiate her claims.
The decision underlines the importance of providing fair hearing opportunities and adherence to the principles of natural justice in tax assessments. The case was remanded back to the CIT(A) to reconsider the evidence presented by the appellant and ensure a fair process.
ITA 43/DEL/2019: Rekha Maheshwari vs ITO, Ward-55(1), New Delhi – Assessment Year 2015-16
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