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Sh. Rajnish Jain Versus Commissioner of Income Tax & Another

2017 (12) TMI 370 - ALLAHABAD HIGH COURT

Reopening of assessment - surrender of income - Held that:- In the first place, the validity of the reassessment proceedings was not an issue raised by the assessee before the Tribunal. That issue had been decided against the assessee by the CIT (Appeals) which part of the order was not challenged in appeal before the Tribunal. Then, as to the addition made on merits, we find that the assessee had himself admitted to have written to the assessing officer on 10.03.2004 and surrendered the dispute .....

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not only on the ground of surrender made by the assessee but also after disbelieving the genuineness of the transaction of purchase and sale of shares. In view of the matter, we do not find any error in the order of the Tribunal. Accordingly, question nos. A and E are answered in affirmative i.e. in favour of the revenue and against the assessee. - Income Tax Appeal No. 338 of 2016 - Dated:- 1-12-2017 - Hon'ble Bharati Sapru And Hon'ble Saumitra Dayal Singh, JJ. For the Appellant : Suyas .....

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ceedings u/s 148 of the Act against the appellant? (B) Whether the assessee have ignored the mode of purchase of 3500 shares of M/s KRS Financial Limited through M/s S.K. Garg and Company Delhi per contract note dated 05.04.1996 and Bill No. M-85 dated 15.04.1996 as well as the letter of K.R.S. Financial Limited dated 28.08.1996 regarding transfer of shares in the name of the appellant and also corresponding the contract note dated 30.05.1997 of Surinder Singh Mehta for sale of shares by Bill No .....

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passed by A.O. u/s 147/143(3) of the Act when there was no reason to believe nor any tangible material with A.O. to form opinion that income of the assessee has escaped assessment? (E) Whether the ITAT was legally justified in affirming reassessment order passed by A.O. u/s 147/143(3) of the Act ignoring the fact that A.O. framed assessment u/s 147 without carrying out any inquiry and without affording opportunity to assessee to cross examine the witness?" At the very outset Sri Suyash Agar .....

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d 15.04.1996. The shares were claimed to have transferred in the name of assessee on 13.06.1996. The said shares were then claimed to have been sold through another broker S.S. Mehta on 30.05.1997 @ ₹ 175 per share. While the assessee had disclosed the purchase of aforesaid shares through cash payment, it received the sale proceeds amounting to ₹ 6,06,069/-, through cheque. It then appears that reassessment proceedings were initiated against the assessee under Section 147 of the Act .....

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er the entire amount of ₹ 6,06,069/- subject to non-initiation of the penalty proceedings under Section 271(1)(c) of the Act. In the consequential reassessment order, ₹ 6,06,069/- was added to the undisclosed income of the assessee disbelieving the claim of capital gains. Against the assessment order, the assessee filed first an appeal that came to be decided by the CIT(Appeals), Ghaziabad vide it's order dated 16.03.2005. The CIT (Appeals) held that the additions made on the bas .....

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the assessee. At the same time, the CIT (Appeals) upheld the jurisdiction of the Assessing Officer to initiate reassessment proceedings against the assessee. The revenue carried the matter to the Tribunal. The Tribunal after considering the entire material and facts on record first made observations and recorded findings disbelieving the claim of purchase and sale of shares in question in absence of cogent and reliable evidence to establish genuineness of the transaction. Then, the Tribunal fur .....

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mission, the addition could not have been sustained merely on the admission made by the assessee which in any case was conditional and not binding on the assessee in view of the penalty proceedings initiated against him. Opposing the aforesaid submission, Sri Krishna Agarwal, learned counsel for the revenue submits, the addition had been sustained by the Tribunal on twin reasoning given by the assessing authority. First, the assessing officer had relied on the statement made by broker S.S. Mehta .....

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