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2023 (5) TMI 846 - HC - Income TaxReopening of assessment u/s 147 - Penny stock transaction - information received from Investigation Wing related to penny scrips in which various beneficiaries had transacted - HELD THAT:- In the present case the AO has heard the material on record which would prima facie suggest that the assessee had sold number of shares of a company which was found to be indulging in providing bogus claim of long term and short term capital gain. The company was prima facie was found to be a shell company. The assessee had claimed exempt of long term capital gain by way of sale of share of such company. Notice u/s 148 was issued calling upon the petitioner to deliver a return in the prescribed form for the assessment year 2012-13. The authority received information from Investigation Wing, Kolkata during the year under consideration that the assessee made transaction in penny stock in the scrip of M/s Twenty First Century (I) Limited for an amount of Rs. 6,49,000/-. It is settled law that sufficiency or adequacy of the reasons for the issuance of the notice for reopening of the assessment is not required to be gone into at this stage of the reopening. It can never be said that the final outcome of the proceedings has been derived at by the authority by issuing a notice for reopening. On the basis of material before it as highlighted above, if the Assessing Officer was satisfied to harbour reasons to believe that there was escapement of income and if on such basis, he has exercised his powers under Sections 147, 148 no fault can be found. This Court is in complete agreement with the aforesaid two decisions relied upon by the learned advocate appearing for the respondent- Authority namely; Purviben Snehalbhai Panchhigar [2018 (11) TMI 139 - GUJARAT HIGH COURT] and Pushpa Uttamchand [2022 (5) TMI 1158 - GUJARAT HIGH COURT] - Special Civil Application dismissed.
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