Bogus LTCG Addition u/s 68 Not Sustainable: ITAT Validates Demerger-Allotted Shares Transaction Citing Genuineness of Documentary Evidence

The ITAT has ruled that a "bogus LTCG addition under Section 68 is not sustainable," validating a demerger-allotted shares transaction, citing the genuineness of the documentary evidence. The tribunal found that the tax authorities had no basis to question the transaction, which was a result of a corporate restructuring. The ruling provides significant relief to the taxpayer, ensuring that genuine business transactions are not subject to unwarranted tax additions.