SHEETAL RAJEEV GADRE,MUMBAI vs. ITO WARD 34(3)(2), MUMBAI

ITA 8534/MUM/2025Status: DisposedITAT Mumbai26 February 2026AY 2018-19Bench: SHRI RAHUL CHAUDHARY, JUDICIAL MEMBER SHRI BIJAYANANDA PRUSETH (Accountant Member)1 pages
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What did the Tribunal hold?

The Tribunal held that the reassessment proceedings were valid as the AO had jurisdiction and sufficient tangible material. Regarding the addition, the Tribunal restricted the addition to the net short-term capital gains of INR 1,35,054/- as against the AO's addition of INR 17,64,635/-, stating that the net short-term capital gains are to be brought to tax.

What were the facts?

The assessee filed their return of income declaring a total income. Information was received regarding a syndicate involved in misusing the stock market for generating manipulative trades, providing bogus losses and profits. The assessee was identified as a beneficiary who took accommodation entries for bogus long-term capital gain/short-term capital loss in penny scripts.

What were the issues?

Whether the reassessment proceedings initiated were valid and whether the addition made for alleged bogus penny stock transactions was justified.

Which sections of the Income-tax Act were involved?

Section 147,Section 144,Section 144B,Section 68,Section 115BBE,Section 143(3),Section 148A,Section 151A,Section 151

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Income Tax Appellate Tribunal, “K (SMC

[ Per Rahul Chaudhary, Judicial Member:

1.

The present appeal preferred by the Assessee is directed against the order, dated 17/10/2025, passed by the National Faceless Appeal Centre (NFAC), Delhi [hereinafter referred to as ‘the CIT(A)’] whereby the Ld. CIT(A) had dismissed the appeal against the Assessment Order, dated 21/12/2023, passed under Section 147 read with Section 144 read with Section 144B of the Income Tax Act, 1961 [hereinafter referred to as ‘the Act’] for the Assessment Year 2018- 2019. 2. The Assessee has raised fol

The order continues below.

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