PANKAJ GUPTA,GWALIOR V. INCOME TAX OFFICER WARD 4(3)(4), HATHRAS

ITA 57/AGR/2026

AI Insights

The case involves Pankaj Gupta, the appellant, who contested the reassessment order issued by the Income Tax Officer, Ward-4(3)(4), Hathras, for the assessment year 2012-13. The reassessment was based on the sale of shares categorized as penny stocks, which allegedly resulted in an income escape. However, the transactions were found to have occurred in October 2010, during the assessment year 2011-12. The primary legal contention was the validity of the jurisdiction assumed under section 147 of the Income-tax Act, 1961, by the Assessing Officer for the subsequent assessment year. The Tribunal's decision to quash the reassessment was based on the incorrect assumption of the year of assessment by the Assessing Officer.

• Duration Of Justice: 2 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-03-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Agra
• Assessment Year: 2012-2013
• Appeal Filed On: 21-01-2026
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SHAILENDRA
• Assessee Lawyers: S.C. JAIN
• Keywords: Reassessment proceedings
• Section: 147; 144

Judgement Text

"Page | 1 INCOME TAX APPELLATE TRIBUNAL AGRA BENCH “SMC”: AGRA BEFORE SHRI M. BALAGANESH, ACCOUNTANT MEMBER AND SHRI SUNIL KUMAR SINGH, JUDICIAL MEMBER ITA No. 57/AGR/2026 (Assessment Year: 2012-13) Pankaj Gupta, Mayur Plaza, Mayur Market, Thaipur, Gwalior Vs. Income Tax Officer, Ward-4(3)(4), Hathras (Appellant) (Respondent) PAN: ALYPG4092R Assessee by : Shri S. C. Jain, CA Revenue by: Shri Shailendra Srivastava, Sr. DR Date of Hearing 18/03/2026 Date of pronouncement 27/03/2026 O R D E R PER M. BALAGANESH, A. M.: 1. The appeal in ITA No.57/Del/2026 for AY 2012-13, arises out of the order of the ld Jt. Ld. Commissioner of Income Tax (Appeals), Bhubaneswar [hereinafter referred to as ‘ld. JCIT(A)’, in short] dated 26.11.2025 against the order of assessment passed u/s 144 of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’) dated 20.11.2019 by the Assessing Officer, ITO, Ward- 4(3)(4), Hathras (hereinafter referred to as ‘ld. AO’). 2. The assessee had challenged the validity of assumption of jurisdiction under section 147 of the Act by saying that the transactions alleging escapement of income does not pertain to the year under consideration and that the same pertains to Assessment Year 2011-12 vide Ground No.4. 3. We have heard the rival submissions and perused the materials available on record. The Learned AO sought to reopen the case of the assessee for Printed from counselvise.com ITA No. 57/AGR/2026 Pankaj Gupta Page | 2 assessment year 2012-13 on the ground that assessee had sold shares for Rs. 5,79,520 on the shares which were categorized as penny stock. The Learned AO gave the list of shares together with the date of relevant transactions. These details are listed in page 30 of the paper book. From perusal of the said table reflected in page 30 of the paper book containing the transaction details, we find that all the transactions were carried out from 4-10-2010 to 29-10- 2010 which falls in assessment year 2011-12 and does not pertain to the year under consideration. Hence, there could not be any valid formation of belief by the Learned AO on the ground that income of the assessee had escaped assessment for assessment year 2012-13 as the transactions do not pertain to the said year. Accordingly, we find merit in Ground No. 4 raised by the assessee that the validity of assumption of jurisdiction under section 147 of the Act by the Learned AO is totally flawed. Accordingly, we have no hesitation in quashing the reassessment proceedings for assessment year 2012-13. The Ground No. 4 raised by the assessee is hereby allowed. 4. Since the entire reassessment is quashed, the adjudication of other factual and legal grounds raised by the assessee become academic in nature and they are left open. 5. In the result, the appeal of the assessee is allowed. Order pronounced in the open court on 27/03/2026. -Sd/- -Sd/- (SUNIL KUMAR SINGH) (M. BALAGANESH) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated:27/03/2026 A K Keot Copy forwarded to 1. Applicant Printed from counselvise.com ITA No. 57/AGR/2026 Pankaj Gupta Page | 3 2. Respondent 3. CIT 4. CIT (A) 5. DR:ITAT ASSISTANT REGISTRAR ITAT, New Delhi Printed from counselvise.com "