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TMI Blog2022 (6) TMI 450X X X X Extracts X X X X X X X X Extracts X X X X ..... in shares resulting in Long Term Capital Gain of Rs.7,92,237/-. Since no return of income for the year under consideration was filed by the assessee, the Assessing Officer reopened the assessment and issued a notice under Section 148 of the Income-tax Act ("the Act' in short) after recording reasons. In response to the said notice, the return of income was filed by the assessee declaring a total income of Rs.1,47,860/-. During the course of assessment proceedings, it was found by the Assessing Officer that the assessee had entered into share transactions through various agencies on Bombay Stock Exchange amounting to Rs.7,92,237/-. According to the Assessing Officer, the said amount represented bogus claim of the assessee on account of Long ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s treated by the Assessing Officer as his undisclosed investment without application of mind since the entire value of transactions cannot be treated as undisclosed income/investment of the assessee by any stretch of imagination. It was also contended that the Long Term Capital Gain was only exempt from tax as per the relevant provisions applicable to the year under consideration and since there was nothing to show that there was any wrong or bogus claim made by the assessee for Long Term Capital Gain, the addition made by the Assessing Officer by treating the same as undisclosed income of the assessee was totally unjustified. The learned CIT(A) did not find merit in this contention raised on behalf of the assessee and rejecting the same, h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wever, no return of income has been filed by the assessee for the year under consideration. On the basis of the above information, I have reasons to believe that the income chargeable to tax has escaped assessment to the tune of Rs.7,92,237/- for the AY 2009-10 as the assessee has failed to make a return of his income for the AY 2009-10." 6. As submitted by the learned Counsel for the assessee, the assessment was reopened by the Assessing Officer for the reason that bogus Long Term Capital Gain of Rs.7,92,237/- was claimed by the assessee for the year under consideration. He has contended that the entire value of transactions made by the assessee in the year under consideration amounting to Rs.7,92,237/- has accepted by the Assessing Off ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rs.7,92,237/- by any stretch of imagination. As pointed out on behalf of the assessee, the said transaction in fact had given rise to Short Term Capital Loss of Rs.3,61,645/- to the assessee. The very basis of reopening of the assessment as reflected in the reasons recorded by the Assessing Officer thus was unfounded and there being no claim of any Long Term Capital Gain of Rs.7,92,237/- made by the assessee much less a bogus Long Term Capital Gain as believed by the Assessing Officer, the reopening of assessment itself on the basis of such wrong and non-existent premises was bad in law as rightly contended by the learned Counsel for the assessee and the assessment made in pursuance therein under Section 143(3) r.w.s. 147 of the Act is lia ..... X X X X Extracts X X X X X X X X Extracts X X X X
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