RAJ SHARADKUMAR AGARWAL,MUMBAI vs. INCOME TAX OFFICER, MUMBAI

ITA 3290/MUM/2025Status: DisposedITAT Mumbai16 February 2026AY 2014-15Bench: SHRI ANIKESH BANERJEE (Judicial Member), SHRI PRABHASH SHANKAR (Accountant Member)1 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the transactions were routed through recognized stock exchanges, supported by documentary evidence like contract notes, demat statements, and bank statements. The AO's addition was based on suspicion and general investigation reports without cogent material linking the assessee to any manipulation.

What were the facts?

The assessee claimed Long Term Capital Gains (LTCG) as exempt under Section 10(38) from the sale of shares of M/s. Rutron International Ltd. The Assessing Officer (AO) treated the LTCG as bogus and added it to the assessee's income, alleging the transaction was an accommodation entry.

What were the issues?

Whether the LTCG claimed as exempt under Section 10(38) is genuine or bogus, and if the addition made by the AO under Section 68 is justified.

Which sections of the Income-tax Act were involved?

Section 10(38),Section 68

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Income Tax Appellate Tribunal, MUMBAI BENCH “D”, MUMBAI

For Appellant: Shri Priyanka Jain, Shri Pankaj Soni & Shri Rohan Mittal
For Respondent: Shri Umashankar Prasad (CIT DR)
Hearing: 16/01/2026Pronounced: 16/02/2026

Per: Anikesh Banerjee (JM): The instant appeal was filed by the assessee against the order of the Ld. Commissioner of Income Tax (Appeal)-51, Mumbai, order passed under section 250 of the Income Tax Act 1961 (for brevity ‘the Act’) for assessment year 2014- 15, date of order 17.01.2025. The impugned order emanated from the order of the Ld. Income Tax Officer, Ward-33(3)(1), Mumbai, order passed U/s 143(3) rws 147 the Act, date of order 29/12/2017. 2 Raj Sharadkumar Agarwal

2.

The Ld. AR argued and filed a paper book containing page-1 to 187 which has been placed on recor

The order continues below.

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