TMI Blog2015 (11) TMI 931X X X X Extracts X X X X X X X X Extracts X X X X ..... case, the reasons recorded is that the petitioner had purchased shares amounting to ₹ 54,22,500/- and the same was sold in the same year for ₹ 39,48,500/- and, therefore, incurred a loss of ₹ 14,74,000/- which has escaped assessment. From this, it is apparently clear that the assessee had disclosed all material facts. There is nothing to indicate failure on the part of the petitioner disclosing fully and truly all material facts. In the absence of this foundational requirement, the initiation of proceedings was patently erroneous and cannot be sustained. The notice is, accordingly, quashed - Decided against revenue - Civil Misc. Writ Petition (Tax) No. 356 of 2003 - - - Dated:- 5-11-2015 - Hon'ble Tarun Agarwala An ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 97 under Section 148 of the Act was issued for reassessment. The reasons recorded for initiating reassessment proceedings is extrated hereunder:- The facts of this year are similar to the Asst. year 1996-97 wherein addition of above ₹ 12 lakhs has been made on account of dealing in shares. The basis of addition has been discussed in detail in the body of assessment order. In this year also loss of ₹ 14 lakhs has been claimed which is to be disallowed. Also the expenses in the head office a/c. are to be examined since huge additions have been made in A.Y. 1996-97. In view of these facts, it is fit case for issuance of notice u/s 148. Based on the aforesaid reasons, proceedings were initiated and a reassessment order und ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... were going on, the Assessing Officer recorded fresh reasons under Section 148 of the Act and, after taking necessary permission from the competent authority, again issued a notice under Section 148 of the Act. Fresh reasons so recorded are extracted hereunder:- Return declaring an income of ₹ 7,73,880/- was filed on 31.10.1995. The Assessee firm is proprietor of M/s Kanodia Floor Mills, Dulhipur, Mughalsarai, which is engaged in the business of production of Atta, Maida, Suji, etc. As per the Profit Loss Account during the previous year relevant to the assessment year 1995-96 certain shares were purchased for ₹ 54,22,500/- and the same were sold within the same year for ₹ 39,48,500/- thereby incurring a loss of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 48 and 153 referred to as the relevant assessment year): Provided that where an assessment under sub-section (3) of section 143 or this section has been made for the relevant assessment year, no action shall be taken under this section after the expiry of four years from the end of the relevant assessment year, unless any income chargeable to tax has escaped assessment for such assessment year by reason of the failure on the part of the assessee to make a return under section 139 or in response to a notice issued under sub-section (1) of section 142 or section 148 or to disclose fully and truly all material facts necessary for his assessment, for that assessment year. A perusal of the first proviso indicates that the reasons to be ..... X X X X Extracts X X X X X X X X Extracts X X X X
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