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Facts
The assessee filed an appeal against the order of the CIT(A) for Assessment Year 2013-14. The assessee's counsel submitted that the issue was covered by a co-ordinate bench's order in a similar case.
Held
The Tribunal noted that transactions were through account payee cheques, demat accounts, and bank statements, with STT duly paid. No cash transactions were involved, and long-term capital loss was not claimed, thus not resulting in any loss to revenue. The addition made by the Assessing Officer was deleted.
Key Issues
Deletion of addition made by the Assessing Officer concerning share transactions, where the assessee provided evidence of legitimate transactions and no claim of loss to revenue.
Sections Cited
250
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Income Tax Appellate Tribunal, SURAT BENCH, SURAT
IN THE INCOME TAX APPELLATE TRIBUNAL SURAT BENCH, SURAT BEFORE DR. B.R.R. KUMAR, VICE-PRESIDENT Ms SUCHITRA KAMBLE, JUDICIAL MEMBER Bhavesh Subodhbhai Sanghavi, Deputy Commissioner of Vs. 401, Rajhans Maxima, Income Tax, Nr. Raghu Ramji Party Plot, Circle-1(3), Umra, Surat. Surat-395007. [PAN : ABLPS0009B] (Appellant) .. (Respondent) Appellant by : Shri Kiran K Shah, AR Respondent by: Shri Ajay Uke, Sr. DR Date of Hearing 21.01.2026 Date of Pronouncement 23.01.2026 O R D E R PER DR. B.R.R. KUMAR, VICE-PRESIDENT:-
This appeal has been filed by the Assessee against the order dated 19.06.2025 passed by the Ld. Commissioner of Income-Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi (“the CIT(A) in short), under Section 250 of the Income-tax Act, 1961 (“the Act”), relating to the Assessment Year 2013-14.
At the outset, the Ld.Counsel for the assessee fairly submitted that the issue raised by the assessee stands covered by the order of the Co-ordinate Bench of this Tribunal in the case Shilpaben Harshil Deliwala in for AY 2013- 14 dated 01.04.2024. For the sake of ready reference, the operative portion of said order is reproduced as under:
We note that both the parties and sale of shares were through account payee cheques and demat account also used and are part of regular accounts. The assessee stated that no transaction was incurred through Sharad Darak whose statement is relied upon. We note that statement of Sharad Darak is of general nature and there is no reference of the assessee concerned. The assessee has not received any loan or benefits out of transactions Asst. Year : 2013-14 - 2– carried out through Jayant Securities & Investment Ltd. We know that in order to prove the transaction genuine the assessee has submitted the bank statement that is all the transactions of purchase and sales work through bank, and assessee submitted the debit note, the assessee also submitted that STT was duly paid on the set transaction and the assessing officer failed to point out that any cash transaction is involved in the assessee's case therefore addition made by the assessing officer should be deleted, for that reliance is placed on following decisions of Hon'ble Gujarat High Court:
(a) CIT w/s. Himani M. Vakil (2014) 41 taxmann.com 425 (Guj.) (b) CIT v/s. Jitendra Dalpat Shah (2014) 41 taxmann.com 523 (Guj.) (c) CIT w/s. Makeshchandra G. Vakil (2013) 40 taxmann.com 326 (Guj.)
(d) CIT v/s. Ramniwas Kasat, 82 taxmann.com 48 (Guj.) 12. We note that assessee had purchased 20000 shares on 08.02.2010 for Rs.4,59,800/- at an average value of Rs.23/- per share. The assessee has sold part of the shares in Financial year (FY.) 2011-12 and the balance share being 14394 shares was sold in the assessment year under consideration. Long term capital loss is not claimed in the computation of income hence there is no loss to the revenue. The assessee has submitted the bank statement before the assessing officer and on the said transaction the STT was duly paid by the assessee. The other relevant documents such as debit note etc were filed by the assessee before the assessing officer. Besides, the assessee has not claimed the long term capital loss in her return of income, hence there is no loss to the revenue. Based on this factual position we find that the addition made by the assessing officer needs to be deleted hence we delete the addition.
In the absence of any change in factual matrix and legal proposition brought to our notice, the appeal of the assessee is hereby allowed.
In the result, the appeal of the assessee is allowed.
The order is pronounced in the open Court on 23.01.2026. (SUCHITRA KAMBLE) VICE-PRESIDENT () Surat; Dated 23.01.2026 **mv Asst. Year : 2013-14 - 3–