TaxTMI 
TaxTMI 
2026 (7) TMI 205
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....following grounds of appeal: "1. The Ld. CIT (A) has grossly erred in law and on facts in dismissing the appeal filed by the appellant. He ought to have allowed the appeal fully in accordance with the grounds of appeal raised by the appellant before him. I. CHALLENGING THE VALIDITY OF NOTICE ISSUED u/s. 148 OF THE ACT AND PASSING THE ORDER u/s. 147 R.W.S. 144B OF THE ACT 1. That the Ld. CIT(A) has erred in law and on facts in upholding the validity of the reassessment proceedings initiated under Section 147 of the Income-tax Act, 1961, notwithstanding the fact that the original assessment was duly completed under Section 143(3) on 29.02.2016 after full and proper examination of all material facts. The reo....
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.... the appellate proceedings and has further erred in making the unwarranted observation that the appellant has sought to bring the impugned income under the guise of bogus exempt long-term capital gains. 3. The Ld. CIT(A) has erred in failing to appreciate that the appellant has not carried out any trading in the shares of Hemo Organics Limited. The appellant had undertaken only legitimate, document-backed, bona fide transactions in the shares of Dinesh Allorga Limited, which was subsequently renamed as Hemo Organics Limited. 4. The Ld. CIT(A) has further failed to recognize that the results of the trading activities in the shares of Dinesh Allorga Limited formed an integral part of the computation of income chargeable unde....
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....ry by way of non-genuine high value financial transactions in the shares of Hemo Organics to bring unaccounted income under the garb of exempt Long Term Capital Gains (in short "LTCG"). The entire consideration of Rs. 48,85,810/- shown by the assessee on sale of shares of Hemo Organics represents unaccounted income of the assessee. The assessee has not paid any tax showing the gain under the head "exempt LTCG". Notice u/s 148 of the Income Tax Act, 1961 (in short "the Act") was issued to the assessee on 30.03.2021 which was served to the assessee. The assessee filed return of income for AY 2013-14 in response to notice u/s 148 of the Act declaring total income of Rs. (-)17,43,420/-. Notice u/s 143(2) of the Act was issued on 25.10.2021 and ....
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....ete details relating to the purchase and sale of the scrip, including the demat account statements, contract notes, and account statements evidencing the transactions in the said scrip. However, it is observed that the addition under section 68 of the Act has been made by the Assessing Officer primarily on the basis of the investigation findings pertaining to Hemo Organics and the uncharacteristic appreciation in the price of the scrip. We further note that an identical issue came up for consideration before the Tribunal in the case of Rameshkumar Karsanbhai Patel v. ITO in ITA No. 669/SRT/2025, wherein the matter was examined and adjudicated vide order dated 09.04.2026. 6. At this stage, it would also be appropriate to refer to various ....
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.... 6.4 In the case of Sanat Kumar Vs. ACIT Delhi, Circle 36(1), Hon'ble ITAT Delhi Bench has held that the so-called sale proceeds of shares received and claimed as exempt u/s. 10(38) was held to be sham transaction because of huge price rise of shares at the time of sale despite the fact that company's profits are negligible and did not support such price rise. 6.5 In the case of Abhimanyu Soin Vs. Asst, CIT, Circle VII, Ludhiana, ITAT, Chandigarh, Bench A, in ITA No. 951/CHD/2016, the Tribunal held as under:- "On consideration of the facts of the case as a whole it cannot be accepted that the assessee can have long term capital gains of Rs. 80,25,291/- within 17 months of buying of shares at Rs. 2,72,000/- a non- descrip....