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2023 (11) TMI 544 - HC - Income TaxValidity of reopening of assessment u/s 147 - Eligible income to be brought to tax - HELD THAT:- Even if there was no reply filed by petitioner the onus is on department to justify the reopening. If one considers the material relied upon by respondents to reopen, there are two buy and two sell. What has been brought has been sold or what has been sold only has been brought. It is well settled that only the net income from the buy and sell transactions can be brought to tax in petitioner’s hand and not the entire sum as done in this case. There is no attempt to even apply their mind as to how, when there are contra entries of buy and sell, both amounts could be added to say escapement of income. Therefore, in this case, considering the figures as given in the reasons for reopening, net income from the buy and sell transactions which can be brought to tax in petitioner’s hand and not the entire amount. In the petition, petitioner has stated that this net income also is less than the maximum amount which is not chargeable to income tax for the assessment year in question and accordingly no income chargeable to tax has escaped assessment in petitioner’s hand. There is no denial in the affidavit in reply. Thus the issue of the impugned notice under section 148 of the Act, the passing of the impugned assessment order and the issue of the impugned demand notice and the impugned penalty notice and after going through the same and examining the question of legality thereof quash, cancel and set aside
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