Vandana Deepak Savla Vs ITO (ITAT Mumbai)
The Hon’ble ITAT Mumbai recently addressed the case of Vandana Deepak Savla vs ITO concerning alleged penny stock transactions for Assessment Year (AY) 2014-15. The appellant had declared income of ₹9,09,390 in her income tax return but was issued notices under Sections 142 and 148 of the Income Tax Act, 1961. These notices aimed to reopen the assessment, citing suspicions about proceeds from the sale of shares in SRK Industries Ltd., which were categorized as a penny stock. The Assessing Officer (AO) added ₹1,55,47,275 under Section 68 and ₹4,66,418 under Section 69C for commission allegedly paid to brokers, bringing the total taxable income to ₹1,69,23,083. The assessee contested the additions, claiming compliance with securities laws and fulfilling conditions for tax exemptions under Section 10(38).
The CIT(A) upheld the AO’s order due to the appellant’s non-compliance during appellate proceedings. The assessee escalated the matter to ITAT Mumbai, arguing that she was denied the opportunity to substantiate her claims. The ITAT found merit in granting the appellant another chance to present her case in adherence to the principles of natural justice. Despite opposition from the Departmental Representative citing repeated non-compliance, the ITAT remanded the matter to the CIT(A) for fresh adjudication. The appellant was directed to actively participate in the proceedings without unnecessary delays.
