SUBHASHCHANDRA PATEL,DAMAN vs. ASSESSMENT UNIT INCMOE TAX DEPARTMENT, VAPI

ITA 92/SRT/2025Status: DisposedITAT Surat10 September 2026AY 2018-196 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the assessee had provided all necessary details regarding the purchase and sale of shares, including bank statements and demat records. The AO failed to establish a direct link between the assessee's actions and any price manipulation, thus the addition was not justifiable.

What were the facts?

The assessee booked Long Term Capital Gain (LTCG) of Rs. 28,37,851/- from the sale of Fiberweb India Ltd. shares, which the AO treated as unexplained credit. The assessee claimed the shares were purchased in 2008 and sold after holding them for approximately 10 years, providing purchase and sale details.

What were the issues?

The primary issues were the validity of the reopening of assessment and whether the LTCG from the sale of shares constituted unexplained cash credit taxable under Section 115BBE.

Which sections of the Income-tax Act were involved?

Section 148,Section 147,Section 143(3),Section 68,Section 115BBE

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, SURAT BENCH, SURAT

For Appellant: Shri Kumar Kale, Advocate
For Respondent: Shri Ashish Kumar, Sr. DR
Hearing: 23.06.2026Pronounced: 10.09.2026

PER : SUCHITRA KAMBLE, J M:

The appeal filed by the assessee is against the order passed by the Learned Commissioner of Income Tax, Appeal, National Faceless Appeal Centre (NFAC) [in short “CIT(A)”] dated 07.01.2025 for the Assessment Year (in short “AY”) 2018-19. 2. The assessee has raised the following grounds of appeal:

“1. On the facts and circumstances of the case, the CIT(A) erred in upholding the validity of the AO’s action of reopening notice u/s 148 of the Act and the consequent assessment order passed us 143(3) r.w.s 147 of the Act which is invalid, without juri iction, bad in law and void ab ini

The order continues below.

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