MANAN ARATI PATEL,AHMEDABAD vs. THE ITO, WARD- 3(3)(2), AHMEDABAD, AHMEDABAD

ITA 735/AHD/2026Status: DisposedITAT Ahmedabad22 September 2026AY 2022-202310 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the transaction of sale of Foodlink shares was supported by documentary evidence, including a SEBI PMS registration, account statements, and a valuation report. Therefore, the sale proceeds could not be treated as an unexplained cash credit under Section 68, and the long-term capital loss was allowed.

What were the facts?

The assessee sold shares of Foodlink Services India Pvt. Ltd. and claimed a long-term capital loss. The Assessing Officer treated the sale consideration as an unexplained cash credit under Section 68. The CIT(A) confirmed this addition and disallowed the capital loss.

What were the issues?

Whether the sale consideration of unlisted shares transacted through a SEBI-registered PMS can be treated as unexplained cash credit under Section 68, and if the consequential long-term capital loss is allowable.

Which sections of the Income-tax Act were involved?

Section 68

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, D” BENCH, AHMEDABAD

Per Rahul Chaudhary, Judicial Member:

1.

The present appeal has been preferred by the Assessee against the Order, dated 27/01/2026, passed by the National Faceless Appeal Centre (NFAC), Delhi [hereinafter referred to as the ‘CIT(A)’] whereby the Learned CIT(A) had partly allowed the appeal against the Assessment Order, dated 27/03/2024, passed under Section 143(3) read with Section 144B of the Income Act, 1961 [hereinafter referred to as ‘the Act’] for the Assessment Year 2022-2023. 2. The Assessee has raised the following grounds of appeal:

1.

The learned Commissioner of Income-tax (Appeals) (the "Ld. CIT

The order continues below.

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