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TMI Blog2025 (1) TMI 808X X X X Extracts X X X X X X X X Extracts X X X X ..... sment order passed u/s 147/143(3) of the I.T Act, 1961 even when no addition has been made on the issue which was recorded in reasons to believe for initiating reassessment proceedings by the Learned Assessing Officer. 3) That the National Faceless Appeal Centre (NFAC), Delhi has erred in law and on facts in not appreciating that the order passed by Deputy Commissioner of Income Tax Circle 4(3)(1) is void ab intio as the Learned Assessing officer was not having any jurisdiction on the appellant. 4) That the National Faceless Appeal Centre (NFAC), Delhi has erred in law and on facts in sustaining the disallowance of expenses of Rs 12,15,413/- 5) That the National Faceless Appeal Centre (NFAC), Delhi has erred in law and on facts in sustaining the disallowance of loss of Rs 56,407/- The appellant craves leave to add, alter or vary the grounds of appeal before or at the time of hearing." 3. Brief facts of the case are that the assessee filed return of income on 11.07.2012, declaring total income of Rs. 8,16,230/-. Case of the assessee was reopened by the Revenue for framing reassessment by invoking provisions of section 147 of the 1961 Act. Notice u/s. 148 dated 26.03.2019 wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that income of the assessee has escaped assessment while invoking provisions of Section 147, which are placed on record in the paper book, which are reproduced hereunder : Reason for the belief that income has escaped assessment As per the information in the possession of this office, the assessee has purchased shares of Rs. 1,37,45,896/-, during the FY 2011-12 corresponding to AY 2012-13. The assessee has purchased shares of Rs. 1,37,45,896/-, during the FY 2011-12 corresponding to AY 2012-13. During the course of preliminary verification notices u/s 133(6) were issued to the assessee on 26.02.2019 and 08.03.2019. In response to these notices, the assessee has not submitted any reply. The assessee has not provided any document to substantiate the source of the investment of Rs. 1,37,45,896/- in the share transactions despite given opportunities In view of the facts discussed as above it is very evident that the assessee did not explain the sources of investment of Rs. 1,37,45,896/- in the share transactions despite given opportunities. Therefore, I have reason to believe that income of Rs. 1.37,45,896/- as mentioned above has escaped assessment within meaning of Sec 147 o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... There are two additions made by the Assessing Officer. One is on account of disallowance of expenses of Rs. 12,15,413/- by invoking the provisions of section 57(iii) and other disallowance is of Rs. 56,407/- being speculation loss. Learned counsel relied upon the following judgments : 1 Hon'ble Bombay High Court - CIT v/s Jet Airways (I) Ltd in IT Appeal Nos 1526 of 2008 & 1714 of 2009 2. Hon'ble Delhi High Court - Pr. CIT v/s Sunlight Tour & Travels Pvt Ltd in ITA No 222/2022 3. Hon'ble Agra ITAT- Anugrah Varshney v/s Income Tax Officer in ITA No 134/Ag/2014 4. Hon'ble Agra ITAT - Vacmet India Ltd v/s DCIT in ITA No 334/AGR/2019 5. Hon'ble Mumbai ITAT- Sandeep Kumar Hissaria v/s ITO in ITA No 1571/Mum/2012 6. Hon'ble Mumbai ITAT- Aditya Logistics (I) Pvt Ltd v/s ACIT in ITA No 2408/Mum/2012 5.3. These judgments are filed in the form of legal paper book, carrying 59 pages, which is placed on record in file. Ld. Counsel for the assessee submitted that the additions could not be sustained as were made by the Assessing Officer because on the basis of reasons recorded for reopening of assessment by invoking provisions of Section 147 which forms the belief that income to th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... six years from the end of the assessment year. I have observed that no addition has been made by the AO with respect to the reasons recorded for reopening of the concluded assessee which formed the belief of the AO that income has escaped assessment to the tune of Rs. 1,37,45,896/- towards purchase of shares, for which case of the assessee was reopened with respect to the alleged investment of Rs. 1,37,45,896/- made by the assessee in the share transactions. Before me, it is explained by ld. Counsel for the assessee that the assessee has not made any investment in the shares, but rather the assessee has entered into the transactions in Futures and Options(F&O), and contracts are squared up in settlement wherein profits/loss was offered for taxation. In any case, it is observed that no additions has been made in reassessment proceedings by the AO with respect to the alleged sources of investment made by the assessee to the tune of Rs. 1,37,45,896/- in shares, as was claimed by the Revenue in the reasons recorded for reopening of the concluded assessment by invoking provision of Section 147 which formed the belief for reopening of the concluded assessment. The assessee's contention t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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