Madhu Hareshkumar Jain vs. Dy. Commissioner of Income Tax

Parties Involved

Facts Summary

The assessee, Madhu Hareshkumar Jain, filed her return of income for the Assessment Year 2018-19 declaring a total income of Rs. 30,30,283/-. The Department issued a notice under section 148 of the Income-tax Act, 1961, leading to a reassessment. The Assessing Officer found that the assessee had claimed exemption under section 10(38) for long-term capital gains from the sale of shares of Kushal Tradelink Ltd., which were part of a larger manipulation mechanism. The Assessing Officer made additions of Rs. 28,29,990/- as unexplained credit under section 68 and Rs. 2,26,400/- as unexplained expenditure under section 69C. The Commissioner of Income Tax-Appeals upheld the additions, leading to the assessee filing an appeal before the Tribunal.…

Legal Issues

• 1. Validity of reassessment proceedings
• 2. Addition of Rs. 28,29,990/- as unexplained credit under section 68
• 3. Addition of Rs. 2,26,400/- as unexplained expenditure under section 69C

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

Similar Judgements

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

  Mumbai bench

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

• Surendra Garg, HUF vs Income Tax Officer 19(3)(4), Mumbai

• ITO Vs. Sahil Vinod Agarwal (HUF), AYs- 2017-18, 2018-19 & 2019-20

  Ahmedabad bench

• Girish Chimanlal Sangani vs. DCIT-Central Circle

  Mumbai bench

• Ruchi Jain Vs Income Tax Officer

  Delhi bench