TMI Blog2023 (11) TMI 27X X X X Extracts X X X X X X X X Extracts X X X X ..... ion 68 holding the same to be unexplained cash credit. Thus, the reason to believe which in the first instance, impelled the Department to reopen the proceedings has undergone a complete change. As well settled that once the Assessing Officer assumes jurisdiction to reopen the proceedings under Section 148, he cannot independently make additions in respect of other income which escapes assessment unless the Assessing Officer makes some additions based on allegations in the reasons recorded. See JET AIRWAYS (I) LTD. [ 2010 (4) TMI 431 - HIGH COURT OF BOMBAY] and Living Media India Ltd.[ 2013 (6) TMI 128 - DELHI HIGH COURT ] In the instant case, the foundation of reopening has been knocked out and additions have been made on unrela ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sale of 26500 shares of Amulya Leasing Finance Limited) 5. That the ld. CIT(A) has erred in upholding the addition of Rs. 3,13,227/-, which was made by the Id AO on hypothetical basis u/s 68. 6. That the ld. CIT(A) has erred in upholding the addition of Rs. 10,238/which was made by the Id AO while stating since the gains in trading in Amulya Leasing Finance Limited is being treated as bogus expenses claimed in this account are disallowed and added back to the income of the assessee us 69C of the Income Tax Act 1961 . 3. When the matter was called for hearing, the ld. counsel for the assessee at the outset submitted that while there are many facets to the challenge towards assumption of jurisdiction under Section 147 of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ins and income from other sources. The assessee filed return of income for AY 2011-12 declaring total income of Rs. 67,81,160/-. The ITR was processed u/s. 143(1) of the Act, however no assessment was carried out u/s. 143(3) of the Act. 2. For AY 2011-12, the Assessing Officer received information from Oo DDIT(Inv), Unit 6(2), Mumbai through e-mail dated 25.03.2018 that the assessee had sold shares of a penny stock 'Amulya Leasing and Finance Ltd. (now Apollo Pipes Lid.) during FY 10-11. 3. This information was cross-verified with other information available with the AO in respect of the assessee. When the 360 degree profile of the assessee was examined on the ITBA portal, it was found that the assessee had sold shares of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d entry providers also made statements before the Directorate of Investigation, Kolkata and Pata wherein they admitted to having been involved in manipulation of prices of such scrips. 5. It is evident that M/s Amulya Leasing and Finance Ltd. (now Apollo Pipes Ltd.) is penny stocks and gains booked by the assessee are not genuine. This is based on the information received in this office, as well as independent enquiries to corroborate the same as explained in the preceding paras. 6. Therefore, based on the assessee's nature of transactions, corroborative evidence on the Scrips and its financials as detailed above, I have reasons to believe that income chargeable to tax has escaped assessment for AY 11-12. Such escaped income i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the proceedings has undergone a complete change. 6. It is well settled that once the Assessing Officer assumes jurisdiction to reopen the proceedings under Section 148, he cannot independently make additions in respect of other income which escapes assessment unless the Assessing Officer makes some additions based on allegations in the reasons recorded. In other words, if the Assessing Officer does not assess income for which reasons were recorded, he is not empowered to assess other income in the re-assessment proceedings. A reference is made to various judgments viz, CIT vs. Jet Airways, 331 ITR 236 (Bom); Ranbaxy Laboratory Ltd. vs. CIT, order dated 03 June, 2011 (Del HC); CIT vs. Living Media India Ltd., 359 ITR 106 (Del). In the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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