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IN THE INCOME TAX APPELLATE TRIBUNAL

MUMBAI BENCH “F”, MUMBAI

BEFORE SHRI ANIKESH BANERJEE, JUDICIAL MEMBER AND

SHRI GIRISH AGRAWAL, ACCOUNTANT MEMBER

ITA No.4206/Mum/2025

(Assessment year: 2014-15)

Jayshree Haresh Shah vs Income Tax Officer, Ward-

25, HarharWala Building, 19(2)(1), Mumbai

S.V.P. Road, Opp. Moti Talkies, Piramal Chamber, Lalbaug, Parel,

Mumbai-400004 Mumbai-400012

PAN:ABEPS4262M

APPELLANT RESPONDENT

Assessee by : Shri K. Gopal alw Shri Om Kandalkar,

Respondent by : Shri Sushil B. Shendge (SR. DR)

Date of hearing : 11/02/2026

Date of pronouncement : 05/03/2026

O R D E R

Per: Anikesh Banerjee (JM):

The instant appeal of the assessee filed against the order of the NFAC, Delhi

[for brevity ‘the Ld. CIT(A)], order passed under section 250 of the Income Tax Act

1961 (for brevity ‘the Act’) for assessment year 2014-15, date of order

16.06.2025. The impugned order emanated from the order of the Ld. Income Tax

Officer Ward 19(2)(1), Mumbai (for brevity the ‘Ld. AO’) order passed under

section 143(3) of the Act date of order 26.12.2016.

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ITA No.4206/Mum/2025

Jayshree Haresh Shah

2. The brief facts of the case are that the assessee filed the return u/sec.

139(1) of the Act. Scrutiny assessment was initiated and notice u/sec. 143(2) was

duly issued. The Ld. AO found that the assessee had purchased 15,000 shares of

Conart Traders Ltd. on 27.11.2011 through off market at the rate of Rs.20/- each

and payment was made through proper banking channel. Later the company was

amalgamated with M/s. Sunrise Asian Ltd (SAL) a listed entity. These 15000

Shares of SAL were held for around 22 months and were sold on various dates in

FY 2013-14 on Bombay Stock Exchange Limited (BSE) platform by paying STT

thereon on sale of these shares. Thus all the eligible conditions of u/sec 10(38) of

the Act are duly complied with. The assessee was duly eligible to claim exemption

and had claimed exemption thereon. The assessee made the total sale amount of

Rs.7,41,59,400/-. The assessee claimed the deduction u/sec. 10(38) of the Act

related to profit on sale of share of long term capital gain. During the assessment

proceeding the Ld. AO made the entire transaction as a bogus transaction,

disallowed the exemption u/sec. 10(38) of the Act and added back the entire sale

proceeding amount to Rs.7,41,59,400/- with the total income of the assessee.

Aggrieved assessee filed an appeal before the Ld. CIT(A). The Ld. CIT(A) uphold the

order of the Ld. AO . Being aggrieved assessee filed an appeal before us.

3. The Ld. AR argued and filed a paper book containing page 1 to 87 which has

been placed on record. The Ld. AR contended that during the assessment

proceeding the assessee has submitted all the relevant documents related to the

purchase of shares, share certificates, bank statement, demat account and

confirmation of the broker. But none of the documents are duly rejected by the

revenue authorities. He further invited our attention in list of documents annexed

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ITA No.4206/Mum/2025

Jayshree Haresh Shah

in APB which were duly filed before the revenue authorities. The list of the

documents is reproduced as below:

Sr. No. Particulars Page No.

4 Copy of the letter dated 19.10.2016 filed in response to the above notice 8

along with the following annexures:

a. Annexure 1: Copy of the ITR acknowledgement along with 9-11

computation of income, Balance Sheet, Profit and Loss account and

capital account for A.Y. 2013-14

b. Annexure 4: Copy of the statement of long-term capital gains for A.Y. 12-35

2014-15 along with holding statements and contract notes

5 Copy of the letter dated 01.11.2016 filed in response to the above notice 36-37

along with the following annexures:

a. Annexure 2: Copies of the Purchase Bills / Share Certificates for 38-42

allotment of 15000 shares of Sunrise Asian Ltd.

b. Annexure 3: Copy of the bank statement showing payment made for 43

purchase of 15000 shares of Sunrise Asian Ltd.

c. Annexure 4: Copy of the Demat statement showing holding of 15000 44-52

shares of Sunrise Asian