DEPUTY COMMISSIONER OF INCOME -TAX CENTRAL CIRCLE-1(1), AHMEDABAD, AHMEDABAD, GUJARAT V. PINKIBEN RIDDHESHKUMAR BHANDARI, AHMEDABAD, GUJARAT

MA 127/AHD/2025

AI Insights

The case involves the Department of Income Tax (DCIT/ACIT Central Circle-1(1), Ahmedabad) versus Pinkiben Riddheshkumar Bhandari, concerning the assessment year 2018-19. The Department initially lost the appeal due to the low tax effect, but subsequently filed a miscellaneous application citing exceptions under Circular No.5/2024, which includes cases of organized tax evasion and bogus capital gains through penny stocks. The Tribunal acknowledged the seriousness of the allegations against the assessee, which involved earning bogus long-term capital gains through penny stock trading, and thus recalled the earlier order and restored the appeal for re-examination.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 830703 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 month(s) 2 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 20-01-2026
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: misc
• Appeal Filed On: 18-12-2025
• Laws Referred To: Circular No.5/2024 dated 15/03/2024
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: RAMESHWAR P. MEENA
• Assessee Lawyers: ANIL KSHATRIYA; ALAY ANIL KSHATRIYA; ARS
• Keywords: Tax effect; Capital Gains; Accommodation entries; Penny stocks; Bogus

Judgement Text

" आयकर अपीलीय अिधकरण, अहमदाबाद \u0012ायपीठ “बी“, अहमदाबाद । IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, AHMEDABAD \u0015ी संजय गग\u001a, \u0012ाियक सद\u001b एवं अ पूण\u001a गु!ा, लेखा सद\u001b क े सम%। ] ] Before Shri Sanjay Garg, Judicial Member And Annapurna Gupta, Accountant Member MA No.127/Ahd/2025 ( in आयकर अपील सं /in ITA No.976/Ahd/2025) िनधा \u0013रण वष\u0013 /Assessment Year : 2018-19 The DCIT/ACIT Central Circle-1(1) Ahmedabad – 380 009 बनाम/ v/s. Pinkiben Riddheshkumar Bhandari 201, Panchshil Residency Nr. Panchshil Bus Stand Usmanpura Ahmedabad – 380 013 \u0017थायी लेखा सं./PAN: AEMPB 8417 L (अपीलाथ(/ Appellant) ()* यथ(/ Respondent) Assessee by : Shri Anil Kshatriya & Shri Alay Anil Kshatriya, ARs Revenue by : Shri Rameshwar P. Meena, Sr.DR सुनवाई की तारीख/Date of Hearing : 09/01/2026 घोषणा की तारीख /Date of Pronouncement: 20/01/2026 आदेश/O R D E R Per Sanjay Garg, Judicial Member: The present miscellaneous application has been moved by the Department requesting for recalling of the order dated 16/09/2025 passed by this Tribunal in ITA No.976/Ahd/2025 for AY 2018-19. The Tribunal vide order dated 16/09/2025 had dismissed the appeal of the Revenue on account of low-tax effect. However, the Ld.DR has submitted that the present case Printed from counselvise.com MA No.127/Ahd/2025 (in ITA No. 976/Ahd/2025 DCIT vs. Pinkiben Riddheshkumar Bhandari Asst. Year : 2018-19 2 falls in the exceptions mentioned in para No.3.1(b) of Circular No.5/2024 dated 15/03/2024 issued by CBDT. The same is reproduced hereunder: “Cases involving organized tax evasion including cases of bogus capital gain/loss through penny stocks and cases of accommodation entries”. 2. He has submitted that the issue involved is relating to the bogus capital gains earned by the assessee on sale of shares of penny scrip Kushal Ltd., which is covered under the exception clause. 3. The Ld. AR of the assessee has been fair enough to admit that, in this case, the allegation of the Assessing Officer (AO) that the assessee is involved in earning bogus Long Term Capital Gain through penny stock trading, which is covered under the exception clause. 4. In view of this, the order dated 16/09/2025 passed in ITA No.976/Ahd/2025 is hereby recalled and appeal is ordered to be restored to its original position and Number. The Registry is directed to fix the appeal afresh for hearing in regular course. 5. In the result, the MA filed by the Revenue is allowed. Order pronounced in the Open Court on 20/01/2026. Sd/- Sd/- (Annapurna Gupta ) Accountant Member ( Sanjay Garg) Judicial Member अहमदाबाद/Ahmedabad, िदनांक/Dated 20/01/2026 टी.सी.नायर, व.िन.स./T.C. NAIR, Sr. PS Printed from counselvise.com MA No.127/Ahd/2025 (in ITA No. 976/Ahd/2025 DCIT vs. Pinkiben Riddheshkumar Bhandari Asst. Year : 2018-19 3 आदेश की &ितिलिप अ'ेिषत/Copy of the Order forwarded to : 1. अपीलाथ( / The Appellant 2. &)थ( / The Respondent. 3. संबंिधत आयकर आयु* / Concerned CIT 4. आयकर आयु* ) अपील ( / The CIT(A)- 11, Ahmedabad 5. िवभागीय &ितिनिध , अिधकरण अपीलीय आयकर , अहमदाबाद/DR,ITAT, Ahmedabad. 6. गाड\u0013 फाईल / Guard file. आदेशानुसार/ BY ORDER, स)ािपत &ित //True Copy// सहायक पंजीकार (Asstt. Registrar) आयकर अपीलीय अिधकरण, ITAT, Ahmedabad 1. Date of dictation (dictation pad is attached with file) : 19.1.2026 2. Date on which the typed draft is placed before the Dictating Member. : 19.1..2026 3. Date on which the approved draft comes to the Sr.P.S./P.S : 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 : 6. Date on which the fair order comes back to the Sr.P.S./P.S. : 20.1.26 7. Date on which the file goes to the Bench Clerk. : 20.1.26 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 : Printed from counselvise.com "