Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2021 (12) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (12) TMI 413 - HC - Income TaxReopening of assessment u/s 147 - Bogus share transactions - eligibility of reasons to believe - HELD THAT:- Revenue received information in respect of two penny stock companies sometime in February 2019 and petitioner was one of the beneficiary who had traded in the scrip of those two penny stock companies - also mentioned that the assessee was one of the beneficiary of transaction classified as non genuine shares sale / purchase transactions and assessee had traded to the tune of ₹ 33,68,750/- in one scrip and ₹ 1,42,42, 303/- in another scrip for A.Y.-2012-2013. According to the reasons petitioner is one such person who has availed accommodation entries of bogus sale of two penny stock companies and, therefore, the transactions are not genuine and are merely accommodation entries executed solely to accommodate unaccounted income of assessee. We do not find in these reasons anything which can be termed illusory, hypothetical or a matter of conjecture. There is nothing wrong in the notice for us to set it aside exercising our jurisdiction under Article 226 of the Constitution of India. Validity of order passed u/s 144B - As argued AO has proceeded to pass the assessment order dated 13th May 2021 disregarding the stay granted by this court - HELD THAT:- This assessment order has been passed in gross breach of the order passed by this court. We would add this order amounts to willful disobedience of the order passed by this court. In fact the Assessing Officer has recorded in the assessment order there is a stay granted but because limitation in this case will be barred on 30th March 2021, he has no option but to complete the case before the limitation and passes the order on 13th May 2021. In the assessment order, the Assessing Officer is referring to a letter stating that the assessee has furnished the Hon’ble High Court’s letter and reproduce the letter. But it is not a letter but an order of the court, which also shows total non application of mind by the Assessing Officer and by referring to an order of this court as letter the Assessing Officer is undermining the authority of this court. At the request of Mr. Pinto we are not issuing notice for contempt against the Assessing Officer but at the same time such gross disobedience cannot be ignored. This order, therefore, has to be quashed and set aside. Since we have found there was no error in the notice dated 26th March 2019 issued under Section 148 of the Act, we would remand the matter back to that stage. The Assessing Officer shall consider the submissions of petitioner and shall, within 6 weeks from the time this order is uploaded, pass fresh order after strictly complying with the provisions of Section 144B including giving a personal hearing to petitioner. As regards the Assessing Officer who has passed the assessment order in gross breach of order passed by this court and we would say in willful disobedience of the order of this court, the Assessing Officer shall pay a sum of ₹ 25,000/- as donation from his / her personal account to P. M. Cares Fund.
|