Jignasa Atulkumar Shah Vs PCIT (ITAT Ahmedabad)
The appeal before the Income Tax Appellate Tribunal (ITAT), Ahmedabad, concerned the validity of a revision order passed by the Principal Commissioner of Income Tax (PCIT) under Section 263 of the Income-tax Act, 1961 for Assessment Year 2018–19. The revision arose from a reassessment order passed under Sections 147 read with 144B.
The assessee, an individual, had originally filed a return declaring income of ₹15,53,920. Based on departmental information, it was alleged that the assessee was a beneficiary of accommodation entries involving manipulation of share prices of M/s Oasis Tradelink Ltd., with transactions amounting to ₹40,95,442. The assessee had claimed exemption of long-term capital gains under Section 10(38) amounting to ₹37,24,755. A notice under Section 148 was issued, followed by reassessment proceedings. The reassessment resulted in addition by treating the share transactions as penny stock.
The assessee filed an appeal before the Commissioner of Income Tax (Appeals) [CIT(A)], which remained pending. During this period, the PCIT issued a show cause notice under Section 263 stating that the reassessment order was erroneous and prejudicial to the interests of revenue. It was alleged that the Assessing Officer failed to treat the transaction as unexplained income under Section 69A read with Section 115BBE, particularly since the assessee had not maintained books of account and had not explained the source of income.
