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2022 (10) TMI 239 - HC - Income TaxReopening of assessment u/s 147 - notice under section 148A(b) - scrip of Mahanivesh is a penny scrip is also stated in the notice dated u/s 148A(b) - HELD THAT:- The petitioner sufficiently informed that the initiation of reassessment proceeding was due to the fact that the AO had reasons to believe that the petitioner has earned bogus LTCG by trading in the penny scrip of Mahanivesh. Pertinently, in her reply dated 31st May, 2022, the petitioner has not responded to the allegation in the notice that Mahanivesh is a penny scrip. The report sets out detailed facts leading to the conclusion that Mahanivesh is a penny scrip and the trade was undertaken between limited persons at pre-determined prices. It has come on record that the detailed report of the Investigation Wing on the suspicious trading activity of Mahanivesh was not provided to the petitioner. AO should have provided this Report in the first instance with the notice issued under section 148A(b), especially when the assessee had requested for this information in her reply dated 31st May, 2022. We, therefore, find merit in the submission of the petitioner that the assessee has been denied an effective opportunity to answer the findings made in the Report with respect to the transactions undertaken by the assessee with Allied Nippon Limited and Lawrence Cold Storage Pvt. Ltd. We set aside the order dated 30th June, 2022 issued u/s 148A(d) and notice issued u/s 148 with a direction to the petitioner to file its additional reply, responding to the findings of the Report within two weeks. AO shall after considering the reply of the petitioner pass an order under Section 148A(b) within a period of eight weeks thereafter, in accordance with law.
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