TMI Blog2022 (10) TMI 550X X X X Extracts X X X X X X X X Extracts X X X X ..... LTCG earned by the petitioner in AY 2014-15 was bogus and since, the said LTCG was claimed as exempt income, the AO at this stage, concluded that the said bogus LTCG is an income chargeable to tax which has escaped assessment. We therefore in the facts of this case do not find any ground to interfere with the impugned order dated 20th July, 2022, passed under Section 148A(d) of the Act and the re-assessment proceedings, at this initial stage. Writ petition is dismissed reserving liberty to the petitioner to raise all its contentions before the AO. We however direct the AO to provide the petitioner with all the relevant information pertaining to petitioner s transaction with Nyssa Corporation Limited available with the AO, after redacting ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... partial modification, directed that the reassessment notices issued under the erstwhile Section 148 of the Act shall be construed as show cause notice ( SCN ) under Section 148A(b) of the Act. In pursuance of the direction given by the Supreme Court, the Assessing Officer ( AO ) in continuation of the initial notice dated 12th April 2021 issued a notice under Section 148A(b) of the Act dated 27th May, 2022 with respect to the subject AY 2014-15, alleging the following information/material relied upon against the Assessee: 1. In this case, information has been populated in INSIGHT PORTAL under high Risk parameter regarding search action on Naresh Jain Group who, further in verification, found to be an accommodation entry provider who ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... through bank and the shares were sold through the Assessee s Demat Account and through a SEBI registered share broker. 6. Learned counsel for the Petitioner states that in his reply the Assessee has disputed that he was a beneficiary of an accommodation entry in the form of LTCG and no material or document has been provided to the Assessee which would show that the transaction undertaken by Assessee was non-genuine. The Assessee, in his reply also raised an objection with respect to limitation. 7. The matter was first listed on 22nd September, 2022, when learned counsel for respondent, Mr. Kunal Sharma, sought time to obtain instructions from the concerned AO with respect to the material relied upon in support of the transaction pert ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sociates to rig the stock market and to provide accommodation entries inter alia in the form of bogus LTCG to various beneficiaries who intended to bring their unaccounted income into their Books of Accounts without paying taxes. In this report, the petitioner, Assessee has been enlisted as a beneficiary of LTCG for a sum of Rs. 2,58,14,582/- in FY 2013-14, at Serial No. 7158, on account of the sale of shares undertaken in Nyssa Corporation Limited. The details of the penny stocks manipulated by Sh. Naresh Manakchand Jain includes Nyssa Corporation Limited. 9. In reply to the aforesaid, learned counsel for the petitioner states that in the Assessee s ITR for AY 2014-15, he has duly disclosed that in the relevant assessment year he has so ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l has not placed on record any documents evidencing its purchase of the shares on 5th April, 2011 i.e. contract note, the Bank Statement and the Demat Account for the relevant period. Similarly, the ITR for Assessment Year, 2012-13 declaring the initial purchase of said shares has also not been placed on record. The AO had also observed to this effect in its impugned order dated 20th July, 2022. The ITR for AY 2014-15 disclosing sale has been placed on record. 12. Further, the respondent s submissions that Nyssa Corporation Limited is a penny stock, whose price has been manipulated by Mr. Naresh Manakchand Jain and its associates and that accommodation entries in form of bogus LTCGs has been provided to various beneficiaries including th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... escaped assessment. We therefore in the facts of this case do not find any ground to interfere with the impugned order dated 20th July, 2022, passed under Section 148A(d) of the Act and the re-assessment proceedings, at this initial stage. 16. The writ petition is dismissed reserving liberty to the petitioner to raise all its contentions before the AO. We however direct the AO to provide the petitioner with all the relevant information pertaining to petitioner s transaction with Nyssa Corporation Limited available with the AO, after redacting third party information within four weeks from today. 17. We make it clear that we have not expressed any opinion on the merits of the controversy in the writ petition. 18. With the above dir ..... X X X X Extracts X X X X X X X X Extracts X X X X
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