Poonam Gupta Vs DCIT (ITAT Bangalore)
Reopening Based on Wrong Assumption of Bogus LTCG Quashed – Double Addition u/s 68 Deleted – ITAT Bangalore Allows Assessee’s Appeal
ITAT Bangalore held that reassessment u/s 147 was invalid where the AO reopened the case assuming bogus long-term capital gain from penny stock transactions, despite the assessee having already offered the gain as short-term capital gain and not claiming any exemption u/s 10(38). The assessee had furnished complete evidences such as Demat statements, contract notes, and bank records proving genuine delivery-based transactions.
The Tribunal observed that the “reason to believe” lacked live nexus with facts since no LTCG exemption was claimed. Further, the AO made a duplicate addition of ₹87.92 lakh u/s 68 even though the same amount was already included in returned income, resulting in double taxation. ITAT therefore quashed the reopening proceedings and directed deletion of the duplicate addition, allowing the appeal in full.
FULL TEXT OF THE ORDER OF ITAT BANGALORE
1. This appeal is filed by Mrs. Poonam Gupta (the assessee/appellant) for assessment year 2017 — 18 against the appellate order passed by the National Faceless Appeal Centre, Delhi (NFAC) [1d. CIT(A)] dated 21st February 2025 wherein the appeal filed by the assessee against the reassessment order passed u/s. 147 r.w.s. 144 r.w.s. 144B of the Income Tax Act, 1961 [the Act] passed by the Assessment Centre, Delhi (the learned AO) on 30th May 2023 was dismissed.
