9911796707
TMI Blog2022 (10) TMI 239X X X X Extracts X X X X X X X X Extracts X X X X ..... '), order dated 30th June, 2022 passed under Section 148A(d) of the Act. 2. The learned counsel for the petitioner states that the impugned notice issued with respect to Assessment Year ('AY') 2013-14 is statutorily time barred vide 1st proviso to Section 149(1) of the Act (as amended by the Finance Act, 2021) and the impugned order is vitiated on account of absence of information as mandated by 1st proviso to Section 148 of the Act (as amended by the Finance Act, 2021). 3. Learned counsel for the petitioner states that the assessee is an individual tax payer who duly filed her Return of Income ('ITR') for the subject AY 2013-14, declaring a total income of Rs.1,20,540/- and the said ITR was processed under Section 139(1) of the Act. He s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , 2022 objected to the issue of the impugned notice dated 30th June, 2022 and initiation of the proceedings under Section 147 of the Act on various grounds including the absence of information against the petitioner suggesting that the income chargeable to tax has escaped assessment. He states that the petitioner verily believes that no information exists which expressly links the present assessee to any enquiry undertaken against Mahanivesh (India) Limited ('Mahanivesh') with respect to the financial transaction in the latter's scrip. 5. He states that the respondent vide its impugned order has rejected the petitioner's objection on jurisdictional error and it is silent with respect to the petitioner's objection with respect to absence of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8,508 shares to Allied Nippon Limited and Lawrence Cold Storage Private Limited, at internal page 36 of the Report. He states that in the ITR filed by the petitioner for the relevant AY, the LTCG from transactions, as disclosed in Schedule E-1, evidences that though the assessee earned Rs.4,76,77,390/the same was claimed as an exempt income and it was not offered to tax. He states that the petitioner earned LTCG of Rs.4,84,52,944/- through her transactions in the scrip. 8. He states that as per the Report, an analysis of the trading data of the scrip of Mahanivesh was carried out and it is noted that large scale manipulation of trade and fabricated trading activity has taken place in the scrip which has led to generation of fictitious prof ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2544/2018 in Synfonia Tradelinks Pvt. Ltd. v. Income Tax Officer, Ward-22 (4). 12. We have heard the learned counsel for the parties and have perused the Report produced by the respondent. The petitioner admits that she has transacted in the scrip of Mahanivesh and earned LTCG for an amount of Rs.4,84,52,944/- which was claimed as an exempt income. The AO in the notice issued under Section 148A(b) has categorically asserted that the LTCG earned by the petitioner through her financial transactions in the shares of Mahanivesh are bogus. The petitioner in her reply dated 31st May, 2022 had denied the allegations and sought the material which forms the basis of the said allegations and sought further time of two weeks from the date of receipt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is section, as they stood immediately before the commencement of the Finance Act, 2021: ...." (Emphasis Supplied) As noted above, the time limit for initiating assessment proceedings for AY 2013-14 stood extended till 30th June, 2021. The petitioner does not dispute the said facts, consequently, the reassessment notice dated 29th June, 2021, which has been issued within the extended period of limitation is not time barred." 14. In this case as well, the petitioner admittedly was served with a reassessment notice dated 19th April, 2021 within the extended period of limitation and therefore, the first proviso of Section 149 (as amended by Finance Act, 2021) is not attracted in the facts of this case. Further, the income alleged to have ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tigation Wing on the suspicious trading activity of Mahanivesh was not provided to the petitioner. We are of the considered view that the AO should have provided this Report in the first instance with the notice issued under section 148A(b), especially when the assessee had requested for this information in her reply dated 31st May, 2022. We, therefore, find merit in the submission of the petitioner that the assessee has been denied an effective opportunity to answer the findings made in the Report with respect to the transactions undertaken by the assessee with Allied Nippon Limited and Lawrence Cold Storage Pvt. Ltd. 17. We set aside the order dated 30th June, 2022 issued under Section 148A(d) and notice dated 30th June, 2022 issued unde ..... X X X X Extracts X X X X X X X X Extracts X X X X
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