RAMESH PURSHOTTAM MODI ,MUMBAI vs. INCOME TAX OFFICER CIRCLE 22(1), MUMBAI

ITA 6577/MUM/2025Status: DisposedITAT Mumbai19 February 2026AY 2015-16Bench: SHRI SAKTIJIT DEY (Vice President), SHRI MAKARAND VASANT MAHADEOKAR (Accountant Member)1 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the reassessment proceedings were invalid due to a change of opinion, lack of tangible material, and the addition being made on grounds different from those recorded. On merits, treating the dividend as unexplained cash credit under Section 68 was found unsustainable.

What were the facts?

The assessee received substantial dividend income from a mutual fund scheme, which was followed by redemption of units resulting in a short-term capital loss. The Assessing Officer reopened the assessment, alleging the dividend was fictitious and part of a pre-planned arrangement to claim exempt income and artificial loss.

What were the issues?

Whether the reassessment proceedings were validly initiated and whether the dividend income could be treated as unexplained cash credit under Section 68.

Which sections of the Income-tax Act were involved?

Section 147,Section 148,Section 148A,Section 68,Section 115BBE,Section 10(35),Section 94(7),Section 94(8),Section 69A,Section 143(3),Section 144B,Section 250,Section 149,Section 292B,Section 151A

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Cases cited in this judgment(6)Show list

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Income Tax Appellate Tribunal, “D” BENCH MUMBAI

For Appellant: Shri Ashwani Kumar a/w Ms. Deepali
For Respondent: Shri Umashankar Prasad, Ld. DR
Hearing: 12.02.2026Pronounced: 19.02.2026

PER MAKARAND VASANT MAHADEOKAR, AM: This appeal is directed against the order dated 03.10.2025 passed under section 250 of the Income-tax Act, 1961[hereinafter referred to as “the Act”] by the National Faceless Appeal Centre, Delhi [hereinafter referred to as “CIT(A)”], for Assessment Year

2 Ramesh Purshottam Modi 2015-16, arising out of the reassessment order dated 29.05.2023 passed under section 147 read with section 144B of the Act. Facts of the Case

2.

The assessee is an individual. For Assessment Year 2015- 16, the assessee had originally filed return of income declaring total income of Rs. 56,88,130/-. The case was selecte

The order continues below.

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