BHUPESH NEMANI,MUZAFFARPUR vs. ITO, WARD- 1 (1), MUZAFFARPUR

ITA 436/PAT/2025Status: DisposedITAT Patna31 August 2026AY 2018-197 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal upheld the addition made by the Assessing Officer and confirmed by the CIT(A), treating the LTCG as unexplained cash credit. The assessee failed to discharge the burden of proving the genuineness of the share transactions.

What were the facts?

The assessee claimed Long-Term Capital Gains (LTCG) exemption on the sale of shares of Kushal Group, which was investigated by the Income Tax Department. The investigation revealed that Kushal Group was involved in providing accommodation entries for bogus LTCG.

What were the issues?

Whether the LTCG claimed by the assessee on sale of shares is genuine or a bogus claim to evade tax, and if it can be treated as an unexplained cash credit under Section 68.

Which sections of the Income-tax Act were involved?

Section 10(38),Section 68,Section 147,Section 148

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “DB” BENCH, PATNA

Before: SHRI DUVVURU RL REDDY, VP & SHRI LAXMI PRASAD SAHU, AM

For Appellant: Shri G.P.Tulsiyan, AR
For Respondent: Shri Ravi Kant Chowdhary, DR
Hearing: 27.07.2026Pronounced: 31.08.2026

Per Laxmi Prasad Sahu, AM:

This appeal is filed by the assessee against the orders passed u/s 250 of the Income Tax Act, 1961 (hereinafter referred to as “the Act”) by the NFAC, Delhi [hereinafter referred to as “the Ld. CIT(A)] dated 25.07.2025, ITBA/NFAC/S/250/2025-26/1078923933(1). The assessee has raised following grounds of appeal:

“1. That the order of the A.O./CIT-A is biased. AO/CIT-A have not considered the submissions and evidences of the assessee filed. BHUPESH NEMANI; A.Y. 2017-18

2.

With respect to the variation proposed by the A.O. in the order u/s 147 r.w.s.144B for the bogus claim of LTCG of Rs. 12,76,000/-, the assesse

The order continues below.

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