ASSISTANT COMMISSIONER OF INCOME TAX 32(1), MUMBAI vs. SUMAN GANDHI, MUMBAI

ITA 3415/MUM/2025Status: DisposedITAT Mumbai29 January 2026AY 2014-15Bench: SHRI SAKTIJIT DEY (Vice President), SHRI ARUN KHODPIA (Accountant Member)1 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the Revenue failed to establish that the Client Code Modification was done under the assessee's instructions or that the assessee derived any benefit from it. The broker admitted the modification was done independently to save time, and there was no specific allegation of positive gain for the assessee. The Tribunal also questioned the invocation of Section 68 when the amount was not credited in the assessee's books.

What were the facts?

The Assessing Officer (AO) reopened the assessment of the assessee, Suman Gandhi, for AY 2014-15 based on a report from the Serious Fraud Investigation Office (SFIO). The report alleged that the assessee bought shares worth Rs. 3,05,75,681/- through Client Code Modification and booked fictitious profits. The AO treated this amount as unexplained cash credit under Section 68 of the Income Tax Act.

What were the issues?

Whether the addition of Rs. 3,05,75,681/- as unexplained cash credit under Section 68 of the Income Tax Act, based on alleged Client Code Modification, is justified without establishing the assessee's involvement or benefit.

Which sections of the Income-tax Act were involved?

Section 68,Section 147

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “G” BENCH, MUMBAI

Before: SHRI SAKTIJIT DEY & SHRI ARUN KHODPIA

For Appellant: Shri K. Shivaram, Sr. Advocate &, Shri Sashi Bekal
For Respondent: Shri Swapnil Choudhary – Sr. AR
Hearing: 28.01.2026Pronounced: 29.01.2026

Per Saktijit Dey, Vice President:

Captioned appeal by the department and cross objection by the assessee, arise out of order dated 20.03.2025, passed by National Faceless Appeal Centre (‘NFAC’ for short), Delhi for the assessment year (A.Y. for short) 2014-15. 2 ITA No. 3415/M/2025 & CO No. 268/M/2025 (A.Y.2014-15) Suman Gandhi

2.

At the outset, we will deal wit

The order continues below.

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