SANGITA BEN MARDIA,MUMBAI vs. INCOME TAX OFFICER 23(3)(6), MUMBAI

PER SAKTIJIT DEY, V.P.:

These appeals by the assessee arise out of two separate orders, both dated 08.01.2025, passed by the National Faceless Appeal Centre (NFAC),
Delhi for the Assessment Years (AYs) 2015-16 and 2016-17. Grounds raised are common in both the appeals, except variance in figures.
2. Though, the assessee has challenged the validity of the assessment orders by raising certain legal and juri ictional issues in Ground Nos. 1 to 3, however, at the time of hearing, learned counsel appearing for the assessee
ITA No. 853 & 854/Mum/2025
Sangita Ben Mardia Mumbai
Versus
ITO, Mumbai urged the Bench to decide the appeals on merits in terms of Ground Nos. 4
and 5. 3. Briefly the facts are, the assessee is a resident individual. For the assessment years under dispute, the assessee had filed her returns of income in regular course. Subsequently, as per the information available in the portal of the Department, the Assessing Officer (AO) was found that assessee had sold 10250 shares of M/s. Appu Marketing and Manufacturing Ltd. also known as Ejecta Marketing Ltd. in A.Y. 2015-16 for an amount of Rs.67,68,101/- and claimed such income as exempt under the head Long
Term Capital Gain. Similarly, she had sold 23250 shares of the same company in A.Y. 2016-17 for Rs.1,38,72,950/- and claimed exemption of Long Term Capital Gain (LTCG). Based on such information, assessments in case of the assessee for the aforesaid years were reopened u/s. 147 of the Income Tax Act 1961 (in short the ‘Act’). To verify the genuineness of exemption claimed in respect of Long Term Capital Gain arising out of sale of shares of the above noted company in course of assessment proceedings, the Assessing Officer (AO) observed that as per information available with the Department, Ejecta Marketing Ltd./M/s. Appu Marketing and Manufacturing Ltd. is a public Ltd. company incorporated on 19.02.1983
and classified as non-government company with the