Rohit Prakashchandra Shah Vs ITO (ITAT Ahmedabad)
Reopening Under Section 147 Upheld Despite Missing Paragraph in Reasons: ITAT Ahmedabad Clarifies Typo Doesn’t Invalidate AO’s Satisfaction; Reassessment on Penny Stock LTCG Justified When Original Return Omits Capital Gains, Says ITAT Ahmedabad; Typographical Error in Recorded Reasons Doesn’t Invalidate Reopening: ITAT Affirms AO’s Action Based on Insight Portal Inputs; No Bar on Using Search-Based Information for Reopening: ITAT Upholds Validity of Section 147 Action; Claim of Exempt LTCG on Penny Stock Rejected: ITAT Upholds Addition as Unexplained Cash Credit; Bogus LTCG Through Penny Stocks: ITAT Applies Human Probability Test to Uphold Tax Addition; No Contract Notes, No Genuineness: ITAT Ahmedabad Rejects LTCG Claim on Nyssa Corporation Shares; AO Entitled to Examine Entire Share Transaction, Not Just Sale: ITAT Upholds Denial of Exemption on LTCG; Human Probability Prevails Over Paper Evidence in Penny Stock Gains, Rules ITAT Ahmedabad; Accommodation Entry via Penny Stock Established: ITAT Upholds Tax Department’s Findings Based on Circumstantial Evidence.
Assessee, a salaried individual, had declared ₹5.28 lakh income. On the basis of Insight Portal information showing LTCG of ₹1.88 crore on Nyssa Corporation Ltd. shares (earlier Ravinay Trading Co. Ltd.), AO reopened assessment u/s 147. Citing investigation reports of entry operator Shri Naresh Jain, who admitted to providing accommodation entries through penny stock trades, AO treated the entire sale proceeds as unexplained cash credits u/s 68.
