SANJAYKUMAR MEHTA,MUMBAI vs. DCIT CTRCLE 19(3), MUMBAI

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ITA 5797/MUM/2025Status: DisposedITAT Mumbai04 September 2026AY 2015-1614 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the assessee had discharged the initial onus by providing documentary evidence of genuine transactions through a recognized stock exchange. In the absence of specific material against the assessee, the addition based on general allegations was not sustainable.

What were the facts?

The assessee sold shares of Toyam Industries Ltd. and claimed Long-Term Capital Gains (LTCG) exempt under Section 10(38). The Assessing Officer (AO) treated this as an unexplained cash credit under Section 68, alleging the shares were part of a penny stock manipulation scheme.

What were the issues?

Whether LTCG from penny stock transactions can be treated as unexplained cash credit without specific evidence of assessee's involvement in manipulation.

Which sections of the Income-tax Act were involved?

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

AI-generated summary — verify with the full judgment below

Before: HON’BLE JUSTICE (RETD.) C. V. BHADANG & SHRI PRABHASH SHANKAR

For Appellant: Shri Vimal Punmiya, CA
For Respondent: Shri Rajgopal Parthasarathi, Sr. DR
Hearing: 02.07.2026Pronounced: 04.09.2026

आदेश की प्रतितलति अग्रेतिि/Copy of the Order forwarded to : 1. अपीलार्थी / The Appellant 2. प्रत्यर्थी / The Respondent. 3. आयकर आयुक्त / CIT 4. विभागीय प्रविविवि, आयकर अपीलीय अविकरण DR, ITAT, Mumbai 5. गार्ड फाईल / Guard file.

P a g e | 14 ITA No. 5797/Mum/2025 A.Y. 2015-16 Sanjaykumar Mehta सत्यावपि प्रवि //True Copy// आदेशानुसार/ BY ORDER,

उि/सहायक िंजीकार (Dy./Asstt. Registrar) आयकर अिीलीय अतधकरण/ ITAT, Bench, Mumbai.

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