RAMESHBHAI PRAJAPATI,GANDHINAGAR V. THE ACIT, GANDHINAGAR CIRCLE, GANDHINAGAR

ITA 784/AHD/2025

AI Insights

The case involves Rameshbhai Prajapati, the appellant, who appealed against the order of the CIT(A) confirming the addition of Rs. 1,99,350 to his income for the Assessment Year 2012-13, which was treated as unexplained investment from the sale of shares. The shares in question were of Diamant Infrastructure Ltd., purchased in 2002 and sold in 2011. The Assessing Officer had reopened the case based on information regarding bogus share transactions and added the amount to the appellant's income. The CIT(A) upheld this addition, leading to the appeal before the Tribunal. The Tribunal, after reviewing the evidence, found no substantial proof of the appellant's involvement in any wrongdoing and thus allowed the appeal, deleting the addition.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 708538 (ITAT-AHMEDABAD)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-07-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2012-2013
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: KAMAL DEEP SINGH
• Assessee Lawyers: JAIMIN SHAH
• Keywords: Unexplained investment; Tangible material; Bogus
• Section: 147; 148; 143(3); 234B

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH, AHMEDABAD BEFORE DR. B.R.R. KUMAR, VICE-PRESIDENT Ms SUCHITRA KAMBLE, JUDICIAL MEMBER ITA No. 784/Ahd/2025 (Assessment Year: 2012-13) Rameshbhai Prajapati, Plot No. 242/2, Sector 1 C, Gandhinagar-382001 [PAN :ACKPP 9936 C] Vs. Assistant Commissioner of Income-tax, Gandhinagar Circle, Gandhinagar (Appellant) .. (Respondent) Appellant by : Shri Jaimin Shah, AR Respondent by: Shri Kamal Deep Singh, Sr DR Date of Hearing 07.07.2025 Date of Pronouncement 18.07.2025 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 10.02.2025 passed by the Ld. ADDL/JCIT(A)-10, Mumbai (hereinafter referred to as \"CIT(A)\" for short), passed u/s 250 of the Income-tax Act, 1961, (hereinafter referred to as \"the Act\" for short) for the Assessment Year (AY) 2012-13. 2. The assessee has raised the following grounds of appeal: “01. That the Ld. CIT(A), NFAC has erred both in law and on facts while rejecting the appeal of the appellant without considering the documents on records and therefore the addition made by A.O. of Rs. 1,99,350/- being unexplained investment required to be deleted. 02. That the Ld. assessing officer has re-opened the case of the appellant after 4 years without any tangible material on record and hence the re-opening itself is bad in law illegal and required to be quashed. 03. The appellant has furnished all the details and documents regarding capital gain and holding of shares more than 8 years, however without considering the material on records, the NFAC has dismissed the appeal of the appellant on the basis of assumption. and presumption is not valid in law ITA No.784/Ahd/2025 Rameshbhai Prajapati Vs. ACIT Asst. Year : 2012-13 - 2– and therefore the addition sustained by the CIT(A) of Rs. 1,99,350/- require to be deleted. 04. That the A.O. has initiated penalty proceedings u/s 270A(1) and 270A(9)(a) are against the provision of Act, and hence it requires to be drop. 05. That the appellant has neither committed default of Sec. 210 nor made any default in payment of advance tax and therefore unwanted interest charged u/s 234A 234B and 234C requires to be deleted.” 3. The brief facts of the case are that the assessee is engaged in the business of share trading and has filed his return of income on 30.07.2012 for the year under consideration, declaring total income of Rs.36,25,660/-and the same was processed u/s 143(1) of the Act. Based on the information from DDIT (Inv.), Mumbai regarding bogus share transactions in Diamant Infrastructure Ltd., the case of the assessee was reopened u/s 147 and notice u/s 148 was issued on 29/03/2019. Based on investigation findings, sale of shares worth Rs. 1,99,350/- was treated as unexplained investment and added to the income of the assessee and determined the total income of the assessee at Rs. 38,25,010/- u/s 143(3) of the Act. 4. Aggrieved by the order of the Assessing Officer, the assessee filed appeal before the Ld. CIT(A) who confirmed the addition of Rs.1,99,350/- made by the Assessing Officer. 5. Aggrieved by the order of the Ld. CIT(A), the assessee is now in appeal before the Tribunal. 6. We have heard the rival contentions and perused the material available on record. 7. The pertinent facts required for adjudication of the issue are that the assessee filed return of income declaring total income of Rs.36,25,660/-. The said shares of Diamant Infrastructure Ltd. were purchased in 2002 and were sold in ITA No.784/Ahd/2025 Rameshbhai Prajapati Vs. ACIT Asst. Year : 2012-13 - 3– 2011. The evidences with regard to sale and purchase were on record. The company DCGP Ltd has shown the assessee as the shareholder in the record filed before the RoC. The assessee was holding shares of 200 vide Folio No. 2691 at Sr. no. 1236 in the shareholders’ list as on 18.08.2002 itself. The said shares have sold in 2011. Further, we find that no tangible evidence regarding the involvement of the assessee way back in the year 2002 with regard to purchase of shares which led to sale of shares of Rs.1,99,350/- (para 3/AO) has been brought on record by the Revenue. Hence, the addition of Rs.1,99,350/- is hereby deleted. 8. In the result, the appeal of the assessee is allowed. The order is pronounced in the open Court on 18.07.2025 Sd/- Sd/- (SUCHITRA KAMBLE) (DR. B.R.R. KUMAR) JUDICIAL MEMBER VICE-PRESIDENT Ahmedabad; Dated 18.07.2025 *btk आदेश की \u0007ितिलिप अ ेिषत/Copy of the Order forwarded to : 1. अपीलाथ\u0007 / The Appellant 2. \b थ\u0007 / The Respondent. 3. संबंिधत आयकर आयु\u0015 / Concerned CIT 4. आयकर आयु\u0015(अपील) / The CIT(A)- 5. िवभागीय \bितिनिध, आयकर अपीलीय अिधकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाड फाईल / Guard file. आदेशानुसार/ BY ORDER, True Copy सहायक पंजीकार (Dy./Asstt. Registrar) आयकर अपीलीय अिधकरण, , , , अहमदाबाद / ITAT, Ahmedabad "