Disallowance of Rs. 31.38 Lakh u/s 37 of Income Tax Act: ITAT Restores Matter to AO

Tax Levied on Gain from Cryptocurrency Sale as Capital Gains: ITAT The ITAT ruled that gains from the sale of cryptocurrency should be taxed as capital gains under the Income Tax Act. The case involved a taxpayer who had earned significant profits from trading in cryptocurrencies. The Income Tax Department had assessed the gains as business income, but the ITAT disagreed, stating that the transaction should be classified as a capital asset. This ruling clarifies the tax treatment of cryptocurrency transactions, setting a precedent for future cases. The decision underscores the growing need for clear tax guidelines surrounding digital currencies and their impact on the tax landscape.