NRUPESH SHAH HUF,MUMBAI V. ITO 34(3)(2), MUMBAI

SA 9/MUM/2026

AI Insights

The case involves M/s Nrupesh Shah HUF, who filed a stay application against the recovery of an outstanding demand of Rs.25,67,766 for the Assessment Year 2017-18. The demand was related to the treatment of short-term capital gain as unexplained cash credit under Section 68 of the Income Tax Act, 1961. The First Appellate Authority had dismissed the assessee's appeal due to a delay of 155 days without adjudicating on the merits. The Tribunal considered the payment of 20% of the outstanding demand by the assessee and granted the stay based on a prima facie case and balance of convenience.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 832121 (ITAT-MUMBAI)
• Duration Of Justice: 9 day(s)
• Appeal Type: Stay Application
• Pronouncement Date: 23-01-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: misc
• Appeal Filed On: 14-01-2026
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: BHAGIRATH RAMAWAT.
• Assessee Lawyers: VIRAJ MEHTA
• Keywords: Unexplained cash credit; Application of stay
• Section: 68

Judgement Text

" Page | 1 S.A. No.9/Mum/2026 In ITA No.164/Mum/2026 IN THE INCOME TAX APPELLATE TRIBUNAL “H” BENCH, MUMBAI BEFORE SHRI SAKTIJIT DEY, VICE PRESIDENT AND SHRI GIRISH AGRAWAL, ACCOUNTANT MEMBER S.A. No. 9/MUM/2026 [ITA No.164/Mum/2026] Vs. A.Y. 2017-18 M/s Nrupesh Shah HUF, Flat No. 701, 7th Floor, Heritage View Building, Dadabhai X Road No.3, Vile Parle (West), Mumbai - 56 Income-Tax Officer- 34(3)(2), Mumbai (Appellant) (Respondent) PAN AAHHN 0469H Assessee by Shri Viraj Mehta Revenue by Shri Bhagirath Ramawat. Sr. DR Date of hearing 23.01.2026 Date of pronouncement 23 .01.2026 O R D E R The Captioned Application, has been filed by the assessee seeking stay on recovery of outstanding demand of Rs.25,67,766/- for the Assessment Year 2017-18. 2. We have heard both the parties and perused the materials on record. It is the say of the assessee that the demand arises out of treatment of short- Printed from counselvise.com Page | 2 S.A. No.9/Mum/2026 In ITA No.164/Mum/2026 term capital gain offered by the assessee as unexplained cash credit under Section 68 of the Income Tax Act, 1961 (in short the ‘Act’). 3. On perusal of record, it is noticed that the appeal filed by the assessee before learned First Appellate Authority has been dismissed on the ground of delay of 155 days without adjudicating on merits. We have further noticed that the assessee has paid 20% of the outstanding demand. Thus, after considering the prima facie case and balance of convenience, we are inclined to grant stay on recovery of the balance demand for a period of 180 days from the date of this order or till the disposal of the corresponding appeal, whichever is earlier. Since we have stayed the demand, Assessing Officer is directed to immediately withdraw the attachment order issued against the assessee. We further direct the Registry to fix the corresponding appeal for hearing on 11.02.2026 out of turn basis. Paper books, if any, must be filed sufficiently ahead of the date of hearing. We make it clear that in the event of any adjournment being sought by the assessee, the stay granted is likely to be vacated. 4. In the result, Stay Application is allowed in the terms indicated above. Order pronounced in the open court on 23/01/2026. Sd/- Sd/- Sd/-df Sd/- (Girish Agrawal) (Saktijit Dey ) (Accountant MEMBER) (VICE PRESIDENT) Mumbai, Dated: 23.01.2026 Aks/- Printed from counselvise.com Page | 3 S.A. No.9/Mum/2026 In ITA No.164/Mum/2026 Copy of the Order forwarded to : The Appellant, The Respondent, The CIT, The DR ITAT & Guard File BY ORDER, True Copy// Sr. Private Secretary/ Asst. Registrar Income Tax Appellate Tribunal, Mumbai Printed from counselvise.com "