PCIT Vs Neelu Mahansaria (Supreme Court of India)
The Revenue filed a Special Leave Petition before the Supreme Court challenging the judgment in the case. The Supreme Court noted a gross delay of 154 days in filing the petition. As the delay was not satisfactorily explained, the Special Leave Petition was dismissed on the ground of delay alone. All pending applications were also disposed of.
Read Gujarat HC Judgment in this case: Gujarat HC Deleted Penny Stock Addition Due to Lack of Adverse Evidence
Before the Gujarat High Court, the Revenue had filed a tax appeal under Section 260A of the Income-tax Act, 1961, challenging an order of the Income Tax Appellate Tribunal, Surat Bench, for Assessment Year 2015–16. The appeal raised questions on the deletion of additions made by the Assessing Officer under Section 68 for alleged undisclosed income arising from sale of shares of Mishka Finance & Trading Ltd., and under Section 69C for alleged commission expenditure. The Revenue contended that the transactions involved a penny stock, that price movements were unsupported by financial fundamentals, and that the Tribunal had ignored circumstantial evidence and preponderance of probabilities.
The assessee had filed the return declaring total income of ₹5,35,440. After scrutiny, the assessment under Section 143(3) was completed with additions aggregating ₹26,52,641. The Tribunal allowed the assessee’s appeal by order dated 18.01.2024, following its earlier decision for Assessment Year 2014–15 on identical grounds.
