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2023 (5) TMI 918 - HC - Income TaxReopening of assessment u/s 147 - reasons to believe that income had escaped tax - subjective satisfaction - Bogus LTCG - Sale of shares of two companies was by the promoters, who was the family members - HELD THAT:- AO found that there was likelihood of the acts and instance of insider trading by the said assessee. The beneficiaries, it was noticed, were the promoters group consisting of family member. The assessee Smt. Paru M. Jaykrishna calculated the long term capital gain and on such transfer, claimed exemption u/s 10(38) - petitioner assessee, it was prima facie found to have earned income to the tune indicated which was chargeable to tax but the same was not shown in the return of income. When on the basis of the above operating facts, the AO harboured reasons to believe that the assessment of the petitioner was required to be reopened, it could be said to be well justified. AO could be said to have formed his opinion on the basis of cogent facts suggesting possibility of escapement of income, though to be probed further in the competent proceedings. Sale of shares of two companies was by the promoters, who was the family members. According to the AO he was satisfied that there was insider trading amongst two family members by which the income which had become chargeable to tax was not shown and had escaped the assessment requiring to exercise powers for reopening of the assessment. There was a strong foundation for invoking reassessment. Challenge to the impugned notice u/s 148 issued by the AO to the petitioner to reopen the assessment in respect of the AY stands merit less. Decided against assessee.
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