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2020 (4) TMI 479 - AT - Income TaxValidity of reopening of the assessment u/s 147 - return was processed under section 143(1) - notice beyond four years - Bogus LTCG claimed - HELD THAT:- Reference to reason would indicate that the AO has nowhere quantified the income escaped. Notice has been issued after an expiry of four years from the end of the relevant assessment year, but before six years. This notice could be issued within limitation if the AO has made out a case that income exceeded rupees one lakh has escaped assessment. No such finding or observation or reference has been made in the reasons extracted (supra). In the opening line of the reasons, the AO has observed that as per information received from the ITO, Ward-16(1), Mumbai, the assessee carried out transaction in shares/securities with M/s.Gold Star Finvest. This information is factually incorrect or not cross-verified by the AO before recording reasons. The assessee has not carried out its share/security transaction with Gold Star Finvest in respect of which capital gain arose to the assessee stand ultimately considered by the AO for denial of exemption under section 10(38) of the Act. Further, a perusal of the reasons would indicate that there is no coherence between the information available with the AO visà-vis transaction of the assessee, and formation of belief that income has escaped the assessment. These reasons are vague and inconclusive. On the basis of such reasoning, the assessment assessee cannot be reopened. Respectfully following the judgment of Hon’ble jurisdictional High Court in the case of Bakulbhai Ramanlal Patel Vs. ACIT [2011 (3) TMI 1576 - GUJARAT HIGH COURT] allow this ground of appeal and quash the re-assessment order. - Decided in favour of assessee.
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