NARESHCHANDRA KAWALE,NAGPUR vs ACIT CIRCLE 5 NAGPUR, NAGPUR

Income Tax Appellate Tribunal, “SMC” BENCH, NAGPUR

Before: SHRI NARENDRA KUMAR CHOUDHRY

For Appellant: Shri Shubham Jain, Ld. Adv

For Respondent: Shri Surjit Kumar Saha, Ld. DR

The present appeal has been filed by the assessee challenging the impugned order dated 08/04/2025, passed by the learned Commissioner of Income Tax (Appeals), Bhubaneswar, [for short, “learned CIT(A)”] for the assessment year 2012–13.

The assessee’s case was re–opened under section 147 of the Income Tax Act, 1961 (for short "the Act"), admittedly on the basis of search and seizure action carried out on the assessee, which resulted into making of addition of Rs.2,87,271, on the reason that thorough

Nareshchandra Kawale ITA no.379/Nag./2025 investigation was conducted by the Income Tax Department, Investigation–2, Mumbai, wherein it was found that a syndicate of persons were acting in collusion and executing managed transactions on the stock exchange generating bogus long term capital gain / bogus short term capital loss for various beneficiaries.

This Court find that the Hon’ble Jurisdictional High Court in Sejal Jewellers v/s Union of India, [2025] ITL–881 (Bom.) has also dealt with identical issue, wherein the case of the assessee was re–opened on the basis of search and seizure operation carried out in the premises of third party and, therefore, the Hon’ble Jurisdictional High Court held that the assessment would have been made under section 153 of the Act but not under section 147 of the Act. The Hon’ble Jurisdictional High Court has ultimately quashed the assessment proceedings along with notice issued under section 148 of the Act. Thus, respectfully following the aforesaid decision of the Hon’ble Jurisdictional High Court cited above, the assessment order itself is hereby quashed.

In the result, appeal of the assessee is allowed.

NARESHCHANDRA KAWALE,NAGPUR vs. ACIT CIRCLE 5 NAGPUR, NAGPUR