ITAT Rejects ₹1.17 Crore Addition as Unexplained Cash Credit on LTCG from Shares due to Lack of Evidence

The Income Tax Appellate Tribunal (ITAT) rejected the addition of Long Term Capital Gain (LTCG) from shares as unexplained cash credit due to a lack of evidence. The ITAT emphasized that mere allegations without supporting evidence are insufficient to justify adding LTCG as unexplained income. The ruling highlights the importance of maintaining proper documentation and evidence to support investment transactions. This decision reinforces the principle that tax assessments must be based on concrete evidence, protecting taxpayers from arbitrary additions. The ITAT’s decision ensures fair and just tax assessments.