9911796707
TMI Blog2024 (6) TMI 1373X X X X Extracts X X X X X X X X Extracts X X X X ..... anding Counsel Mr. Varun Patel waives service of notice of rule for the respondents. 3. Having regard to the controversy in narrow compass, with the consent of the learned advocates for the respective parties, the matter is taken up for final hearing. 4. By this petition under Article 226 of the Constitution of India, the petitioner has challenged the notice dated 30.03.2021 issued under section 148 of the Income Tax Act, 1961 [for short 'the Act']. 5. Brief facts of the case are as under: 5.1 The petitioner filed return of income for Assessment Year 2014-15 on 26.07.2014 declaring total income of Rs. 39,61,071/-. 5.2 The return of the petitioner was processed and the case of the petitioner was selected for scrutiny. A detailed scrutin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of this, syndicate. The DDIT further reported that large. scale manipulation of trades and fabricated trading activity has taken place in the scrip. This has led to generation of fictitious profits and loss derived by various traders which were not genuine and were pre-determined. It can also be stated that the trades were carried out between a set of very few persons which were responsible for trade matching and placing huge orders which were matched against the corresponding counter orders immediately after the orders are placed. Even the price of the scrip was manipulated by the traders by manipulating closing price of the scrip on a particular trading day. This is important as closing price directly influences the opening price of the n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o believe that the income chargeable to tax has escaped to the extent of Rs. 2,27,30,800 /for the A.Y. 2014-15 within the meaning of section 147 of the I.T. Act, 1961 and this is a fit case for re-opening by issuing the notice u/s 148 of the Act." 5.6 The petitioner filed objections before the respondent No. 1 and pointed out the following facts: * "The assessee has subscribed to the initial Public Offer of the Monarch Health Services Ltd (Now Known as Looks Health Services Ltd) and by virtue of the same the assessee has been allotted with 54000 equity shares of the said company. The said shares were dematerialized and credited to the DEMAT Account of the assessee on 26.05.2012. A copy of such DEMAT statement showing such credit of shar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iling of the return and during the course of regular assessment by providing the details of purchase and sales of the shares of M/s. Monark Health Care Limited [Now known as Looks Health Services Limited]. 6.1 It was submitted that the petitioner has purchased the shares through Initial Public Offer [IPO] of the said Company by investing Rs. 21,60,000/- on 25.05.2012 and later on sold the shares in five batches from 28.10.2013 to 29.01.2014 through the registered share broker on the stock exchange and the petitioner has also received the consideration of sale of the share through RTGS in the bank account. It was therefore, submitted that the reasons recorded by the respondent No. 1 for reopening assessment are based upon the borrowed satis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... titioner which is claimed as exemption. The attention of the Court was invited to Page No. 20 Item No. 12 in the notice dated 21.09.2016 issued under section 142 (1) of the Act and the reply given by the assessee at Page 23 disclosing the entire transaction of the purchase and sale of the shares during the year under consideration. 6.5 It was therefore submitted that the issuance of notice under section 148 of the Act by the Assessing Officer is nothing but the change of opinion as the same issue was already considered during regular course of assessment. 7. On the other hand, learned advocate Mr. Patel for the respondent submitted that on the basis of the information received from the DDIT Investigation Unit-5 (1), new Delhi the shares o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... also emerges from the record that during the course of the regular assessment, the Assessing Officer had called for information with regard to the long term capital gain which claimed as exempt and the requisite details was provided by the petitioner along with reply dated 09.11.2016. The petitioner also submitted bills of shares sold during the year under consideration and break up of the capital gain along with the ledger account of the said company. 10. On perusal of the reasons recorded also it is apparent that on the basis of the information received from DDIT Investigation Unit-5(1), New Delhi, the respondent has formed a prima facie belief that there is escapement of income as the petitioner has earned substantial amount of long te ..... X X X X Extracts X X X X X X X X Extracts X X X X
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