Bharti Chirania vs. DCIT, Circle - 23(1)

Parties Involved

Facts Summary

The assessee, Bharti Chirania, filed appeals against the orders of the Commissioner of Income Tax (Appeals) for the assessment years 2014-15 and 2015-16. The appeals challenge the additions made under section 68 of the Income-tax Act, 1961, treating the sale consideration received on transfer of shares as unexplained cash credit, and the consequential addition under section 69C on account of alleged commission paid for obtaining bogus Long Term Capital Gains (LTCG). The assessee claimed exemption under section 10(38) of the Act for LTCG arising from the sale of equity shares of Moryo Industries Limited and Tilak Ventures Limited. The Assessing Officer treated the sale proceeds as unexplained cash credit and made additions under section 68 and 69C, which were confirmed by the CIT(A). The assessee argued that the transactions were supported by documentary evidence and that the SEBI interim order was revoked.…

Legal Issues

• 1. Whether the addition made under section 68 of the Income-tax Act, 1961, is sustainable?
• 2. Whether the consequential addition made under section 69C is sustainable?
• 3. Whether the reassessment proceedings under sections 147/148 of the Act are valid?

Judgment Outcome

Decided in favour of Partly Assessee / Partly Revenue.

Precedents Relied Upon

Similar Judgements

• Sudheer Chirania Vs. The Income Tax Officer, Ward – 23(3)(7), Mumbai

• Girish Chimanlal Sangani vs. DCIT-Central Circle

  Mumbai bench

• NIKITA KAPOOR Vs ITO, NFAC, DELHI / ITO, WARD 54(1), NEW DELHI

• Vipul J.Modi, HUF Vs. ITO, Ward 20(3)(1) Mumbai

• ITA No. 5612/Del/2026: DCIT, Central Circle-25, New Delhi Vs C Net Software Services Pvt. Ltd.

  Delhi bench

• Fort Canning Investments Pte. Ltd. and Fort Canning Credit Investments Pte. Ltd. vs. Assistant Commissioner of Income-tax (International taxation) - 2(3)(1) Mumbai

  Mumbai Bench benchAY 2022-23Allowed