BHIKHALAL PRAHALADRAI AGARWAL HUF,GANDHIDHAM vs. ASSISTANT COMMISSIONER OF INCOME TAX, GANDHIDHAM CIRCLE, GANDHIDHAM

ITA 780/RJT/2024Status: DisposedITAT Rajkot21 August 2025AY 2016-17Bench: DR. ARJUN LAL SAINI (Accountant Member), SHRI DINESH MOHAN SINHA (Judicial Member)1 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the reopening of assessment was valid. The addition on account of LTCG was confirmed as the transactions were found to be bogus. The exemption claimed on buy-back of shares was also denied as the company had not complied with the provisions of Section 115QA.

What were the facts?

The assessee, an HUF, claimed Long Term Capital Gains (LTCG) exemption on sale of shares of Vax Housing Finance Corporation Limited, which was suspected to be an accommodation entry. For another assessment year, the assessee claimed exemption on buy-back of shares of Garg Logistics Pvt. Ltd. under Section 10(34A), which was denied by the AO.

What were the issues?

Whether the reopening of assessment was valid and whether the LTCG and buy-back of shares were genuine transactions eligible for exemption.

Which sections of the Income-tax Act were involved?

Section 147,Section 68,Section 10(34A),Section 115QA,Section 46A

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Income Tax Appellate Tribunal, RAJKOT BENCH, RAJKOT

Before: DR. ARJUN LAL SAINI & SHRI DINESH MOHAN SINHA

For Appellant: Shri Vimal Desai, Ld. AR
For Respondent: Shri Abhimanyu Singh Yadav, Ld. Sr. DR
Hearing: 05/06/2025Pronounced: 21/08/2025

Per, Dr. A. L. Saini, AM

Captioned two appeals filed by the assessee, pertaining to Assessment years, (A.Ys.) 2011-12 & 2016-17, are directed against the order passed by the Learned Commissioner of Income Tax ( Appeals) [Ld. CIT(A)], National Faceless Appeal Centre (in short “NFAC”), Delhi, vide orders dated 16.09.2024 & 30.08.2024, which in turn arise out of the assessment orders, passed by the assessing officer,

The order continues below.

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