ACIT, CENTRAL CIRCLE 2(3), AHMEDABAD vs. DYNAMATIC DEVELOPERS PRIVATE LIMITED, MUMBAI

ITA 572/AHD/2025Status: DisposedITAT Ahmedabad05 February 2026AY 2013-14Bench: SHRI TR SENTHIL KUMAR (Judicial Member), SHRI NARENDRA PRASAD SINHA (Accountant Member)11 pages
AI SummaryDismissed

What did the Tribunal hold?

The Income Tax Appellate Tribunal upheld the CIT(A)'s decision, ruling that the purchases, sales, and profits derived from CCM transactions were already duly accounted for in the assessee's regular books of accounts and reflected in the trading and profit & loss statements. The Tribunal noted that CCM was initiated by the broker, not the assessee, and making separate additions for amounts already disclosed would lead to double taxation. The Revenue failed to controvert these findings.

What were the facts?

The assessee's return for AY 2013-14 was reopened based on information about manipulated commodity trading on NSEL through Client Code Modification (CCM). The Assessing Officer (AO) made additions for fictitious buy (Rs. 11,34,20,350/-) and fictitious sale (Rs. 10,88,87,175/-) transactions under sections 69A/69C, and also added profit (Rs. 1,00,79,414/-) from these transactions as Short Term Capital Gain (STCG). The CIT(A) subsequently allowed the assessee's appeal, deleting these additions.

What were the issues?

Whether additions for fictitious buy, fictitious sale, and Short Term Capital Gain (STCG) from NSEL commodity trading through Client Code Modification (CCM) are justified when these transactions and the associated profit were already included in the assessee's regular books of account and profit & loss statement.

Which sections of the Income-tax Act were involved?

Section 147,Section 144B,Section 148,Section 69A,Section 69C

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “A” BENCH, AHMEDABAD

Before: SHRI TR SENTHIL KUMAR & SHRI NARENDRA PRASAD SINHA

For Appellant: Shri Mitesh Mehta, CA
For Respondent: Shri Alpesh Parmar, CIT-D.R
Hearing: 29.01.2026Pronounced: 05.02.2026

PER NARENDRA PRASAD SINHA, ACCOUNTANT MEMBER:

This appeal is filed by the Revenue against the order of Commissioner of Income Tax, Appeal – 12, Ahmedabad, [in short “the CIT(A)] dated 02.01.2025 for the Assessment Year (A.Y.) 2013-14 in the proceeding u/s 147 r.w.s. 144B of the Income Tax Act.

2.

The brief facts of the case are that the assessee had filed its return of income for A.Y. 2013-14 on 22.09.2014 declaring income of Rs.1,23,66,680/-. The case of the assessee was reopened by issue of ACIT Vs Dynamatic Developers private Limited,AY- 2013-14 2 notice u/s 148 on 31.03.2021 on the basis of informat

The order continues below.

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