TMI Blog2022 (10) TMI 565X X X X Extracts X X X X X X X X Extracts X X X X ..... aforesaid impugned addition, therefore, the said addition is also directed to be deleted. - Decided in favour of assessee. - ITA No.143/Mum./2022 - - - Dated:- 13-10-2022 - Shri Prashant Maharishi, Accountant Member And Shri Sandeep Singh Karhail, Judicial Member For the Assessee : Shri Vimalchand Punmiya For the Revenue : Shri Ajay Singh ORDER PER SANDEEP SINGH KARHAIL, J.M. The present appeal has been filed by the assessee challenging the impugned order dated 03/01/2022, passed under section 250 of the Income Tax Act, 1961 ( the Act ) by learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, [ learned CIT(A) ], for the assessment year 2013 14. 2. In this appeal, the assessee has raised following grounds: On the facts, in the circumstances of the case and in law, the learned Commissioner of Income Tax - Appeals [Ld. C.I.T. (A)] has erred in upholding the impugned assessment order passed by the learned assessing officer (Ld. A.O) without having any lawful jurisdiction as a. there were no cogent reasons to believe that the Income had escaped assessment and accordingly the provisions of section 147 148 were ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... speculation business and income from other sources. The return of income filed by the assessee was processed under section 143 (1) of the Act. Pursuant to the information received from Directorate of Investigation that assessee is a beneficiary of an organised racket of generating bogus entries of long term capital gains in penny stocks, notice under section 148 of the Act was issued initiating reassessment proceedings in the case of the assessee. In response to the notice, assessee filed the return of income and requested to provide the reasons recorded for initiating reassessment proceedings. After receipt of reasons, assessee filed detailed objections before the Assessing Officer ( AO ) against the initiation of reassessment proceedings. The AO rejected the objections filed by the assessee and issued notice under section 143(2) of the Act along with questionnaire for furnishing the details. The AO vide order dated 27/12/2017 passed under section 143(3) r/w section 147 of the Act after, inter-alia, referring to information gathered and collected from the investigation wing pertaining to survey action conducted in the case of company, i.e. First Financial Services Ltd, in whose s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) of the Act. However, subsequent to the information received from Directorate of Investigation that assessee is one of the beneficiaries of bogus penny stock transaction, reassessment proceedings were initiated and notice under section 148 of the Act was issued. The reasons recorded by the AO for initiating the proceedings under section 147 of the Act are as under: In this case, the assessee has filed its return of income for A.Y declaring total income of Rs. 15,02,790/-. Information has been received from the Directorate of Investigation that an organized racket of generating bogus entries of LTCG in Penny Stocks have been unearthed as a result of investigation carried out throughout the country. The assessee, Sunita Chaudhry having PAN: ACLPC7278D, who is assessed in this charge has also availed of such an entry On query from AIR (ITS detail) of the assessee, it is seen that an amount of Rs 90,85,050/- has been reflected under the head of Penny Stock transaction. The Directorate of Investigation has made available various confessional statements of entities involved in the transactions for generating such bogus claims of LTCG. I have also examined these evidence v ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d had reasons to believe that the assessee's income chargeable to tax for AY 2013-14 has escaped assessment. Hence, an independent belief is formed as a result of new facts that emerged in this case. 4. With the above remarks, the objection raised by the assessee is hereby dismissed. You are required henceforth to comply with the notices issued. 10. Pursuant thereto, reassessment proceedings in the case of the assessee was completed and entire long term capital gain claimed by the assessee was added to the total income of the assessee by treating the same as unexplained investment made by the assessee in cash to obtain equivalent amount as bogus profit on sale of shares. As noted above, while making the impugned addition, the AO, inter-alia, referred to the interim orders passed by the SEBI in case of First Financial Services Ltd. 11. We find that SEBI vide interim order dated 19/12/2014 and 11/08/2015, inter-alia, restrained 154 entities, including the assessee, from accessing the securities market and buying, selling or dealing in securities, either directly or indirectly, in any manner, till further directions, pending investigation in the script of in case of F ..... X X X X Extracts X X X X X X X X Extracts X X X X
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