MILLY SEWAK, RAIPUR, RAIPUR vs. ITO-2(1), BILASPUR, BILASPUR

ITA 555/RPR/2026Status: DisposedITAT Raipur07 July 2026AY 2015-167 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the revenue failed to bring any direct nexus of the assessee in share rigging activities or conscious involvement in obtaining bogus long-term capital gains. The assessee was considered an unsuspecting investor.

What were the facts?

The assessee claimed exemption on sale of shares under Section 10(38). The Assessing Officer reopened the case and made additions by disallowing the purchase cost and transfer expenses, treating the shares as penny stocks. The assessee argued that transactions were through banking channels and the stock exchange, and there was no evidence of involvement in any nexus with entry providers.

What were the issues?

Whether the addition made by the Assessing Officer on account of treating shares as penny stock and disallowing purchase cost and expenses is justified without direct evidence of assessee's involvement in any malafide scheme.

Which sections of the Income-tax Act were involved?

Section 10(38),Section 148,Section 147,Section 144B,Section 68,Section 115BBE

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, RAIPUR BENCH “SMC”, RAIPUR

Before: SHRI PARTHA SARATHI CHAUDHURY

For Appellant: Shri R.B Doshi, CA
For Respondent: Shri Piyush Tripathi, Sr. DR
Hearing: 07.07.2026Pronounced: 07.07.2026

PER PARTHA SARATHI CHAUDHURY, JM The present appeal preferred by the assessee emanates from the order of the Ld.CIT(Appeals)/NFAC, Delhi dated 27.04.2026 for the assessment year 2015-16 as per the grounds of appeal on record.

2.

Brief facts in this case are that the assessee being individual derives income from salary, short term capital gain and interest. The assessee has filed return of income declaring total income of Rs.5,92,210/- claiming exemption u/s.10(38)

The order continues below.

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