INCOME TAX OFFICER, SURAT vs. NIRMALKUMAR JHUMARMAL BAID, SURAT

ITA 634/SRT/2025Status: DisposedITAT Surat10 August 2026AY 2015-1614 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal held that the addition made by the AO under Section 68 was devoid of merit. The assessee had discharged the initial onus by providing documentary evidence, and the AO failed to establish any money trail or provide opportunities for cross-examination.

What were the facts?

The assessee claimed long-term capital gains (LTCG) as exempt income on the sale of shares of 'Pine Animation Ltd'. The Assessing Officer (AO) treated these gains as bogus, suspecting penny stock manipulation based on investigation reports and statements from brokers.

What were the issues?

Whether the LTCG claimed as exempt on sale of shares is genuine or bogus, and if bogus, whether it can be added as unexplained cash credit under Section 68.

Which sections of the Income-tax Act were involved?

Section 10(38),Section 68,Section 69C,Section 250,Section 143(3)

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Heard together (3 matters)

I.T.A. No. 296/SRT/2025
I.T.A. No. 444/SRT/2025
I.T.A. No. 634/SRT/2025

Read from the judgment's own cause title. This page is filed under one of them.

आयकर अपीलीय अिधकरण, सूरत "यायपीठ, सूरत । In The Income Tax Appellate Tribunal, “SMC”

Surat Bench, Surat Before Dr. Arjun Lal Saini, Accountant Member [ Assessment Year: 2015-16 ] Αnita Μanojkumar Baid (Individual), Ward 2(1)(1), Surat, Vs.

Plot No. B-22, C-22, T M B House, Majura Gate, Surat, 127, Jari Kasab Society-3, Canal Road, Gujarat-395001 Bhathena, Surat, Gujarat-395002 "थायीलेखासं/.जीआइआरसं/.PAN/GIR No.: AGAPB5048B (Assessee) (Respondent) [ Assessment Year: 2015-16 ] Manojkumar Jhumarmal Baid Ward 2(1)(1), Surat, Vs. (Individual), Majura Gate, Surat, 502, Poonam Apartment, Ghoddod Gujarat-395001 Road, Surat -395007, Gujarat-395002 "थायीलेखासं/.जीआइआरसं/.PAN/GIR No.: ABIPB6286E (Assessee) (Respondent) [ Assessment Year: 2015-16 ] Plot No. B-22, С-22 Т M В House, Surat, Gujarat-395001 127, Jari Kasab Society-3, Canal Road Bhatena Surat, Gujarat-395001 "थायीलेखासं/.जीआइआरसं/.PAN/GIR No.: ACHPB9642A (Assessee) (Respondent)

Assessee by : Shri Rasesh Shah, CA Respondent by : Shri Ajay Uke, Ld. Sr. DR Date of Hearing : 18/05/2026

The order continues below.

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