SHAKTIKUMAR SURESHCHANDRA VYAS,RAJKOT vs. ITO WD 3(1)(1), RAJKOT, RAJKOT

ITA 414/RJT/2025Status: DisposedITAT Rajkot08 September 2026AY 2017-184 pages
AI SummaryAllowed

What did the Tribunal hold?

The tribunal held that the reopening of the assessment was invalid because the approval for issuing the notice under section 148 was obtained from an incompetent authority, violating section 151 of the Act. Therefore, the notice and subsequent proceedings were without jurisdiction.

What were the facts?

The assessee claimed bogus Long-Term Capital Gain (LTCG) and Short-Term Capital Loss (STCL) from penny stock transactions. The Assessing Officer reopened the assessment and made additions. The CIT(A) dismissed the assessee's appeal.

What were the issues?

Whether the reopening of assessment under section 147 read with section 148 is valid when the approval under section 151 was obtained from an incompetent authority, especially after the substitution of sections by the Finance Act, 2021.

Which sections of the Income-tax Act were involved?

Section 147,Section 148,Section 151,Section 10(38)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, Rajkot Bench, Rajkot

Before: Dr. Arjun Lal Saini & Shri Sonjoy Sarma

For Appellant: Shri Rajendra Singhal, Ld. AR
For Respondent: Shri Ganesh Iyer, Ld. Sr. DR
Hearing: 04/08/2026Pronounced: 08/09/2026

Per, Shri Sonjoy Sarma, JM: Captioned appeal filed by the assessee, pertaining to Assessment Year (AY) 2017-18, is directed against the order under section 250 of the Income-tax Act, 1961 [hereinafter referred to as ‘the Act’] passed by the National Faceless Appeal Centre [hereinafter referred to as ‘NFAC’], dated 09.05.2025, which in turn arises out of an order passed by assessing officer u/s. 147 of the Act, dated 19.05.2023. 02. Brief facts of the case are that the assessee, an in

The order continues below.

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