9911796707
TMI Blog2023 (2) TMI 429X X X X Extracts X X X X X X X X Extracts X X X X ..... challenges the reassessment proceedings initiated pursuant to a notice, dated 31st March 2022 issued under section 148 of the Income Tax Act, 1961 ('the Act') leading to the final order of reassessment, dated 26th March 2022 relevant to the assessment year 2013-14. Demand notices as also the penalty notice, both dated 26th March 2022, pursuant to the passing of the order of reassessment are also challenged in the present petition. 2. Briefly stated the material facts are as under : 2.1 The petitioner is a company engaged in the business, interalia, of trading in shares and securities. It is stated that during the previous year relevant to the assessment year 2013-14, shares and securities amounting to Rs.36,04,65,386/- were traded. It is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The petitioner then proceeded to file partial details called for by the respondents. 4. In between, the petitioner states that it was handed over a copy of the Annual Information Report ('AIR'), dated 22nd January 2016 which contained the details of the transactions made by the petitioner with respect to the purchase and sale of shares/ derivatives for the assessment year under consideration as available on the records of the Income Tax Department. The petitioner was directed to reconcile all the entries as per the petitioner's books and to provide documentary evidence for the same. 5. The petitioner further submitted the requisite documents vide communication dated 28th January 2016, furnished all the requisite documents to the Assessing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd that the income chargeable to tax had escaped assessment. The reasons furnished to the petitioner following the mandate of the Supreme Court in the case of GKN Driveshafts (India) Ltd vs Income Tax Officer And Ors. 259 ITR 19 were furnished to the petitioner which read as under : "......Assessee Company has filed return of income for A.Y. 2013-14 on 24.09.2013 declaring total income at Rs.23,16,530/-. The case was selected under CASS and the assessment was completed on 29.03.2016 u/s. 143(3) at 25,37,651/-. Sr.No. Transaction Amount Trading client code 1 Purchase of equity share in a recognised stock exchange 35339046.20 D3627 2 Purchase of equity share in a recognised stock exchange 35537500.00 WW2722 3 Purchase ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ason for reopening were embedded in such a manner that the material evidence could not be discovered by the AO and could have been discovered with due diligence, accordingly attracting provision of Explanation 1 of Section 147 of the Act. 4. Since, the sale of such derivatives and profit and loss from the trading has not been disclosed by the assessee, the only requirement is to initiate proceeding u/s. 147 of the Act to bring to tax the transaction detailed above. As the assessee has undisclosed income during the A.Y.2013-14 which were escaped from assessment. I, therefore, have reason to believe that the assessee income chargeable to tax has escaped assessment for the year under consideration to the extent of Rs.6,90,99,078/-, being ea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the relevant transactions, as identified in the reasons recorded, were not disclosed by the petitioner during the course of the earlier assessment proceedings, the argument that the order of reassessment was nothing but a change of opinion would be untenable. 12. We have heard learned counsel for the parties, at length. 13. With a view to exercise jurisdiction in terms of section 147 of the Act, in a case, where reassessment proceedings were sought to be initiated beyond the period of four years, besides the requirement of having reason to believe that income chargeable to tax has escaped assessment, the Assessing Officer has to further be satisfied that there was a failure on the part of the assessee to disclose fully and truly all ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ales as also the closing stock for the relevant assessment year along with documentary evidence in support thereof. Not only this, the Assessing Officer had also required the petitioner to submit Form No.10DB duly certified and reconciled with the audited account. The petitioner was also required to furnish a copy of all the demat accounts of the company for the financial year 2012-13. The petitioner was also asked to reconcile the entire trade transactions with the details of annual information report submitted to the petitioner by the department. All the aforementioned information and documents, were provided to the Assessing Officer as per the stand of the petitioner. 15. In the present case, it is not the stand of the revenue that the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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