INCOME-TAX OFFICER WARD-3(3)(1),AHMEDABAD, AHMEDABAD vs. DHARA VARUN SHAH, AHMEDABAD

ITA 1964/AHD/2025Status: DisposedITAT Ahmedabad25 February 2026AY 2012-13Bench: SHRI SIDDHARTHA NAUTIYAL (Judicial Member), SHRI NARENDRA PRASAD SINHA (Accountant Member)6 pages
AI SummaryRemanded

What did the Tribunal hold?

The ITAT observed that the CIT(A) admitted additional evidence without forwarding it to the AO for a remand report and failed to examine crucial aspects like whether transactions were routed via demat accounts, if the assessee was a regular trader, or the nature of scrip purchases (stock exchange vs. off-market). Consequently, the tribunal set aside the CIT(A)'s order and remanded the matter to the Jurisdictional AO for fresh adjudication, allowing the assessee to present all evidence.

What were the facts?

The assessee's income tax return for AY 2012-13 was reopened based on information alleging bogus long-term capital loss/business loss through manipulation of stock prices in NYSSA Corporation Ltd. The Assessing Officer treated a transaction of Rs. 56,46,700/- in the said scrip as sham and added it to income. The CIT(A) subsequently deleted this addition, accepting additional evidence provided by the assessee and finding the transactions genuine.

What were the issues?

Whether the CIT(A) erred in deleting an addition related to bogus capital loss/business loss from penny stock transactions without obtaining a remand report from the AO for additional evidence, and without examining vital aspects of the transactions' genuineness.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 147,Section 142(1)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “C” BENCH, AHMEDABAD

Before: SHRI SIDDHARTHA NAUTIYAL & SHRI NARENDRA PRASAD SINHA

For Respondent: Shri Yogesh Mishra, SR-DR
Hearing: 18.02.2026Pronounced: 25.02.2026

PER NARENDRA PRASAD SINHA, ACCOUNTANT MEMBER:

This appeal is filed by the Revenue against the order of National Faceless Appeal Centre(NFAC), Delhi [hereinafter referred to as ‘CIT(A)’], dated 07.08.2025 for the Assessment Year (AY) 2012-13 in the proceedings u/s 143(3) r.w.s. 147 of the Income Tax Act.

2.

The brief facts of the case are that the assessee had filed her return of income for AY 2012-13 on 29.09.2012 declaring total income of Rs.19,50,270/-. The case of the assessee was reopened on the basis of information that she had obtained bogus long term capital loss/bogus business loss through manipulation of stock price on the stock exchange ITO Vs Dhara Varun Shah,

The order continues below.

Read the full judgment

A free account opens 10 full judgments a month. Re-reading one you have already opened does not count again.

Create a free accountSign in

See plans and prices

The summary, the parties, the sections and the citations above are open to everyone and always will be. Only the text of the order and the PDF are metered.

More judgments on Section 147

All 49,210 judgments and leading authorities on Section 147 →

Recent GST High Court judgments

Search GST case law →