Kanchanben Pravinbhai Sheth Vs PCIT (ITAT Surat)
The Income Tax Appellate Tribunal, Surat Bench, decided two appeals filed by the assessee for Assessment Year 2018–19 against separate revisionary orders passed by the Principal Commissioner of Income Tax, Surat–1, under Section 263 of the Income-tax Act, 1961, both dated 17.02.2025. As the facts and grounds were common, the appeals were heard together, with ITA No. 344/SRT/2025 treated as the lead case.
The assessee had filed her return of income on 17.01.2019 declaring total income of ₹19,65,140 and claiming exempt long-term capital gains (LTCG) of ₹37,45,935 under Section 10(38) of the Act. Information was received by the Assessing Officer from the Investigation Wing regarding a survey and search action conducted on a syndicate led by Shri Naresh Jain, which was allegedly engaged in providing accommodation entries of bogus long-term capital gains through manipulation of prices of penny stock companies across the country. Based on this information, the assessee’s case was reopened under Section 147 and notice under Section 148 was issued on 31.03.2022.
During reassessment proceedings, notices under Section 142(1) were issued. The assessee furnished written submissions, bank statements, share certificates, demat account statements, contract notes, ledger accounts, and computation of income. After perusal, the Assessing Officer accepted the returned income and passed an assessment order under Section 143(3) read with Section 144B on 18.03.2023 without making any additions.
