VISHAL SINGHAL,GHAZIABAD vs. ITO,WARD 2(2)(1), GHAZIABAD

ITA 4106/DEL/2024Status: DisposedITAT Delhi17 December 2025AY 2016-17Bench: SHRI ANUBHAV SHARMA (Judicial Member), SHRI AMITABH SHUKLA (Accountant Member)7 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the Assessing Officer's additions were made solely based on information from the INSIGHT portal, without conducting further inquiry or adducing material contrary to the assessee's claim. It noted that the assessee's share purchase transactions were previously accepted by the Revenue, and the SEBI order cited by the AO pertained to an inquiry period that predated the assessee's share sales. Relying on a coordinate bench decision with similar facts regarding the same scrip, the Tribunal found the AO's reliance misplaced and quashed the impugned additions.

What were the facts?

The assessee claimed long-term capital gains (LTCG) exemption of Rs 1,57,78,700 under Section 10(38) for AY 2016-17. The Assessing Officer reopened the case under Section 147 and made additions for alleged bogus LTCG under Section 68 and deemed commission under Section 69C. These additions were based on information from the INSIGHT portal, alleging the assessee was a beneficiary of bogus LTCG in YICL shares, citing SEBI suspension of the scrip and mismatched financials. The assessee had acquired YICL shares through amalgamation and sold them between June 9 and June 24, 2015.

What were the issues?

Whether additions made under Section 68 and Section 69C for alleged bogus long-term capital gains are sustainable when based solely on borrowed satisfaction from an information portal without independent inquiry, and when the supporting evidence (SEBI order) relates to a different period than the assessee's transactions.

Which sections of the Income-tax Act were involved?

Section 147,Section 144B,Section 10(38),Section 148,Section 143(3),Section 69C,Section 68,Section 131(1)(d)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “C” BENCH, DELHI

Before: SHRI ANUBHAV SHARMA&

Hearing: 15.12.2025Pronounced: 17.12.2025

PER ANUBHAV SHARMA, JM:

This appeal is preferred by the assessee against the order dated

09.08.

2024 of the Ld. National Faceless Appeal Centre (NFAC) Delhi,

P a g e | 2 Mr. Vishal Singhal (AY:2016-17) (hereinafter referred as Ld. First Appellate Authority or in short Ld. ‘FAA’)

in DIN & Order No : ITBA/NFAC/S/250/2024-25/1067505369(1) arising out

of the order dated 30.03.2022 u/s 147 r.w.s 144B of the Income Tax Act,

1961 (hereinafter referred to as ‘the Act’) passed by the National Faceless

Assessment Centre, for AY: 2016-17. 2. Heard and perused

The order continues below.

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