ITAT Rules Favor Taxpayers in Capital Gains and Unexplained Income Cases

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The Income Tax Appellate Tribunal (ITAT) recently ruled in favor of taxpayers in three separate cases involving capital gains and unexplained income. In Odisha, a taxpayer who sold properties for cash and paid capital gains tax avoided penalties despite an investigation. In Gujarat, ITAT deleted a capital gains addition after confirming the taxpayer received only part of the reported amount in the relevant year. In Rajasthan, ITAT accepted evidence of a family gift despite lacking formal documentation, deleting an unexplained income addition. These rulings emphasize the importance of actual receipts and credible evidence in tax assessments.