2026 (7) TMI 1102

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.... filed under section 260A of the Income Tax Act, 1961 (For short "the Act") by the appellant Revenue challenging the judgment and order dated 27.09.2024 passed by the Income Tax Appellate Tribunal, Ahmedabad (For short "the Tribunal") in ITA No. 932/Ahd/2023 for Assessment Year 2012-2013 by proposing the following question of law: "a) Whether in the facts and circumstances of the case and in law, the learned ITAT has erred in deleting the addition made u/s. 68 of the Income Tax Act, 1961 on account unexplained cash credits citing that the very of basis of reopening of assessment itself fails as the nominal profit of Rs. 49,792/- arrived by the assessee is less than limitation of Rs. 1,00,000/- for reopening of assessment u/s. 147 o....

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....) is one such scrip and the assessee has traded in the said scrip during the F.Y. 2011-2012 relevant to the Assessment Year 2012-13. It is the case of the Revenue that the assessee has sold shares to the tune of Rs. 13,56,587/-, which is nothing but a sham transaction. Further, it was found on verification of the system that the assessee had filed the return of income for the Assessment Year 2012-2013 on 31.08.2012 declaring total income at Rs. 3,62,340/-. It is the case of the Revenue that the information received from the Investigation wing categorically stated that Shri Naresh Jain, has admitted on oath in his statement recorded u/s.132(4) that with the help of various people, he has manipulated the share prices of various scrip in order....

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....ieved, the assessee preferred an appeal before the CIT(Appeals). 9. CIT(Appeals) followed the decision of Hon'ble Calcutta High Court in the case of Pr. CIT Vs. Swati Bajaj reported in (2022) 446 ITR 56 (Cal) and confirmed the addition made by the Assessing Officer as unexplained credit at Rs. 10,07,173/- and dismissed the assessee's appeal. 10. Being aggrieved, the assessee preferred an appeal before the Tribunal. The Tribunal by impugned order dated 27.09.2024 allowed the appeal of the assessee by observing as under: "7. We have heard the rival submissions and perused the materials available on record. It is undisputed fact that the assessee is in the business of trading of shares on various shares during the year. As it ca....