Gujarat HC Deletes LTCG Addition as Penny Stock Allegation Was Unsupported by Evidence

Deletion of LTCG Additions by Gujarat HC

The Gujarat High Court has upheld the deletion of long-term capital gains (LTCG) additions made by revenue authorities, emphasizing that the Revenue relied on assumptions rather than concrete evidence. The available documentary records clearly established the genuineness of the share transactions in question.

This ruling signifies the Court's commitment to upholding due process and the necessity for the Revenue to substantiate claims with adequate proof.

Tax professionals should take heed of this judgment, reinforcing the importance of comprehensive documentation to support transactions and shield clients from unwarranted tax challenges.