NARESHCHANDRA KAWALE,NAGPUR vs. ACIT CIRCLE 5 NAGPUR, NAGPUR
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Income Tax Appellate Tribunal, “SMC” BENCH, NAGPUR
Before: SHRI NARENDRA KUMAR CHOUDHRY
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.
Order pronounced in the open Court on 27.06.2025
Sd/-Sd/- N.K. CHOUDHRY JUDICIAL MEMBER
Nareshchandra Kawale ITA no.379/Nag./2025
Copy of the order forwarded to:
(1) The Assessee; (2) The Revenue; (3) The PCIT / CIT (Judicial); (4) The DR, ITAT, Nagpur; and (5) Guard file. True Copy By Order Pradeep J. Chowdhury Sr. Private Secretary Sr. Private Secretary ITAT, Nagpur
