BHAVESH SUBODHBHAI SANGHAVI,SURAT V. DCIT CIRCLE 1(3), SURAT

ITA 289/SRT/2025

AI Insights

This case involves an appeal by Bhavesh Subodhbhai Sanghavi against the order of the Commissioner of Income-Tax (Appeals), which pertained to the Assessment Year 2013-14. The primary issue revolved around the additions made by the assessing officer concerning share transactions. The assessee argued that these transactions were genuine, supported by bank statements, payment of Securities Transaction Tax (STT), and other relevant documents. The Tribunal referenced a similar case, Shilpaben Harshil Deliwala, where it was held that the transactions were genuine and no additions were warranted. The Tribunal's decision to allow the appeal was based on the absence of any new factual matrix or legal proposition that would differentiate this case from the precedent.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 830841 (ITAT-SURAT)
• Duration Of Justice: 10 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-01-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: misc
• Appeal Filed On: 05-03-2025
• Other Referred Cases: Shilpaben Harshil Deliwala in ITA No.844/Srt/2023, CIT w/s. Himani M. Vakil (2014) 41 taxmann.com 425 (Guj.), CIT v/s. Jitendra Dalpat Shah (2014) 41 taxmann.com 523 (Guj.), CIT w/s. Makeshchandra G. Vakil (2013) 40 taxmann.com 326 (Guj.), CIT v/s. Ramniwas Kasat, 82 taxmann.com 48 (Guj.)
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AJAY UKE
• Assessee Lawyers: KIRAN K SHAH

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL SURAT BENCH, SURAT BEFORE DR. B.R.R. KUMAR, VICE-PRESIDENT Ms SUCHITRA KAMBLE, JUDICIAL MEMBER ITA No.289/Srt/2025 (Assessment Year: 2013-14) Bhavesh Subodhbhai Sanghavi, 401, Rajhans Maxima, Nr. Raghu Ramji Party Plot, Umra, Surat-395007. [PAN : ABLPS0009B] Vs. Deputy Commissioner of Income Tax, Circle-1(3), Surat. (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. 2. 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 ITA No.844/Srt/2023 for AY 2013- 14 dated 01.04.2024. For the sake of ready reference, the operative portion of said order is reproduced as under: 7. 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 Printed from counselvise.com ITA No. 289/Srt/2025 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. 3. In the absence of any change in factual matrix and legal proposition brought to our notice, the appeal of the assessee is hereby allowed. 4. In the result, the appeal of the assessee is allowed. The order is pronounced in the open Court on 23.01.2026. Sd/- Sd/- (SUCHITRA KAMBLE) (DR. B.R.R. KUMAR) JUDICIAL MEMBER VICE-PRESIDENT (True Copy) Surat; Dated 23.01.2026 **mv Printed from counselvise.com ITA No. 289/Srt/2025 Asst. Year : 2013-14 - 3– आदेश की Ůितिलिप अŤेिषत/Copy of the Order forwarded to : 1. अपीलाथŎ / The Appellant 2. ŮȑथŎ / The Respondent. 3. संबंिधत आयकर आयुƅ / Concerned CIT 4. आयकर आयुƅ ) अपील ( / The CIT(A)- 5. िवभागीय Ůितिनिध , आयकर अपीलीय अिधकरण , /DR,ITAT, Surat, 6. गाडŊ फाईल / Guard file. आदेशानुसार/ BY ORDER, TRUE COPY सहायक पंजीकार (Asstt. Registrar) आयकर अपीलीय अिधकरण ITAT, Surat 1. Date of dictation …words processed by Hon’ble VP on his PC on 17.10.2025……………. 2. Date on which the typed draft is placed before the Dictating Member …03.11.2025…………. 3. Other Member ……06.11.2025………. 4. Date on which the approved draft 5. The date on which the file goes to the Assistant Registrar for signature on the order 6. Date of Dispatch of the Order…………………………………… Printed from counselvise.com "