PRAMOD RAMAVATAR PODDAR,AHMEDABAD vs. THE PR. CIT, CENTRAL CIRCLE, AHMEDABAD
Facts
The assessee's Long Term Capital Gain (LTCG) from share sales was treated as bogus and added under Section 68 by the AO. The Pr.CIT initiated revision proceedings under Section 263, finding the AO's order erroneous for allowing a purchase cost deduction under Section 115BBE(2) despite holding the entire transaction as bogus. The Pr.CIT directed disallowance of this cost. The assessee's appeal against the bogus LTCG addition was already remitted by the ITAT to the CIT(A) for fresh disposal.
Held
The Tribunal found that the issue of bogus LTCG and the related disallowance of purchase cost are interlinked. To ensure justice and avoid multiple litigations, it directed the Ld. CIT(A) to decide both issues collectively in the quantum appeal, which had already been remitted to the CIT(A). The Pr.CIT's order was modified to this extent.
Key Issues
Whether the disallowance of purchase cost related to bogus Long Term Capital Gain, initiated through revision proceedings, should be decided collectively with the primary issue of the genuineness of the LTCG, previously remitted to the CIT(A).
Sections Cited
Section 263 of the Income-Tax Act, 1961, Section 143(2) of the Income-Tax Act, 1961, Section 143(3) of the Income-Tax Act, 1961, Section 68 of the Income-Tax Act, 1961, Section 115BBE(2) of the Income-Tax Act, 1961, Rule 34 of ITAT Rules, 1963
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Income Tax Appellate Tribunal, “B” BENCH, AHMEDABAD
Before: Shri Sanjay Garg & Shri Makarand V. Mahadeokar
आदेश की ितिलिप अ!ेिषत/Copy of the Order forwarded to : 1. अपीलाथ" / The Appellant 2. #थ" / The Respondent. संबंिधत आयकर आयु% / Concerned CIT 3. 4. आयकर आयु% अपील ( ) / The CIT(A)- (NFAC), Delhi 5. िवभागीय ितिनिध आयकर अपीलीय अिधकरण अहमदाबाद /DR,ITAT, Ahmedabad. , , गाड� फाईल / 6. Guard file.
आदेशानुसार/ BY ORDER, स#ािपत ित //True Copy// सहायक पंजीकार (Asstt. Registrar) आयकर अपीलीय अिधकरण, ITAT, Ahmedabad
Date of dictation (dictation on computer)) : 1. 17.2.2026 : 2. Date on which the typed draft is placed before the 17.2.2026 Dictating Member. Date on which the approved draft comes to the Sr.P.S./P.S : 3. : 4. Date on which the fair order is placed before the Dictating Member for pronouncement. : 5. Date on which fair order placed before Other Member : 18.2.26 6. Date on which the fair order comes back to the Sr.P.S./P.S. : 18.2.26 7. Date on which the file goes to the Bench Clerk. : 8. Date on which the file goes to the Head Clerk. : 9. The date on which the file goes to the Assistant Registrar for signature on the order. : 10. Date of Despatch of the Order