DCIT-3(1)(1), MUMBAI, AAYAKAR BHAWAN vs. BHAVNA BHARAT DAFTARY, MUMBAI

ITA 9520/MUM/2025Status: DisposedITAT Mumbai17 August 202634 pages
AI SummaryDismissed

What were the facts?

The assessee transferred shares in an unlisted company on two different dates. The Assessing Officer (AO) recomputed capital gains for the first transfer by adopting the consideration from the second, later transfer. The CIT(A) deleted these additions.

What did the Tribunal hold?

The Tribunal held that the AO was not justified in substituting the actual consideration of the first transfer with the consideration from a separate, independent transaction. The facts and contractual terms of each transfer were distinct.

What were the issues?

Whether the consideration from a subsequent share transfer can be substituted for an earlier, independent transfer. Whether the AO can disregard actual contractual consideration in favor of a later transaction's value.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 144B,Section 50CA

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘B’ BENCH

For Appellant: Shri Percy Pardiwala, Sr, Adv. & Shri Prateek Mehta
For Respondent: Shri Abhishek Meshram
Hearing: 07/05/2026Pronounced: 17/08/2026

PER AMIT SHUKLA (J.M): The present appeal has been preferred by the Revenue against the order dated 22nd October, 2025 passed by the learned Commissioner of Income-tax (Appeals), National Faceless Appeal Centre, for the assessment year 2020-21, whereby the learned CIT(A) deleted the additions aggregating to Rs.97,02,60,256/- made by the Assessing Officer under section 143(3) read with section 144B of the Income-tax Act,

2 Bhavna Bharat Daftary 1961. During the pendency of the present appeal, the original assessee, Shri Bharat Vinod Daftary, expired on 07.12.2023, whereupon his legal heir, Smt. Bhavna Bharat Daftary, was duly substituted and has continued the present proceedings.

2.

At the outset, Shri Percy Pardiwal

The order continues below.

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