BHARATKUMAR GADODIA,MUMBAI vs. ACIT CIRCLE 31(1)(1), MUMBAI

ITA 6362/MUM/2025Status: DisposedITAT Mumbai12 February 2026AY 2014-15Bench: SHRI ANIKESH BANERJEE (Judicial Member), SHRI MAKARAND VASANT MAHADEOKAR (Accountant Member)1 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the assessee had discharged the primary onus of proving the genuineness of the transactions by submitting all requisite documentary evidence, which was neither challenged nor discredited by the revenue authorities. The Tribunal noted that the returns generated were not extraordinary or unnatural, and relied on previous decisions involving the same scrip.

What were the facts?

The assessee, engaged in share investment since 2009, purchased 20,000 equity shares of Two-Up Financial Limited. The company later changed its name to KDJ Holiday Scapes Private Limited. The assessee sold these shares, realizing a Long Term Capital Gain (LTCG) of Rs. 89,26,521/-, which was claimed as exempt under Section 10(38). The Assessing Officer (AO) treated the entire sales transaction as bogus and added the sales amount of Rs. 95,80,971/- to the total income.

What were the issues?

Whether the sale of shares transaction was a sham transaction and the claim of Long Term Capital Gain exemption is valid.

Which sections of the Income-tax Act were involved?

Section 10(38),Section 250,Section 143(3),Section 147,Section 68

AI-generated summary — verify with the full judgment below

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

For Appellant: Shri Ajay R. Singh,Adv & Akshay Pawar, Adv
For Respondent: Shri Leyaqat Ali Aafaqui (Sr. Ar.)
Hearing: 29/01/2026Pronounced: 12/02/2026

Per: Anikesh Banerjee (JM): The instant appeal of the assessee filed against the order of the NFAC, Delhi [for brevity ‘the Ld. CIT(A)], order passed under section 250 of the Income Tax Act 1961 (for brevity ‘the Act’) for assessment year 2014-15, date of order 02.09.2025. The impugned order emanated from the order of the Ld. Assistant Commissioner of Income Tax 31(1)(1), Mumbai (for brevity the ‘Ld. AO’) order passed under section 143(3) r.w.s. 147 of the Act date of order 28.12.2017. 2 Bharat Kumar Gadodia

2.

The brief facts of the case are that the assessee has been engaged in investment in shares since the year 20

The order continues below.

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