9911796707
TMI Blog2025 (5) TMI 440X X X X Extracts X X X X X X X X Extracts X X X X ..... ue consideration of the facts on record adopting one of the courses available to him and therefore ld. PCIT erred in invoking the revisionary power u/s. 263 of the Act and further erred in holding that the re-assessment order dated 29.03.2022 as erroneous in so far as prejudicial to the interest of the Revenue. 3. Brief facts of the case are that the assessee is an individual and declared income of Rs. 17,07,500/- for A.Y. 2017-18 filed on 04.11.2017. Case selected for scrutiny based on the information about bogus long term capital gain addition made in the case of another assessee namely Rajendra Babulal Malu HUF and also based on the information from DDIT(Investigation), Kolkata about the bogus long term capital gain availed through a penny stock company namely Greencrest Financial Services Private Limited. Ld. AO observed that the assessee has also dealt in the very same scrip and has earned capital gain thereon. Accordingly, notice u/s. 148 of the Act was issued followed by validly serving of notices u/s. 143(2) of the Act. Assessee raised objections against the reopening and the same was duly dealt with by ld. AO. Assessee filed certain details and ld. AO concluded the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on 147 read with section 144B of the Act on 29/03/2022 is prejudicial to the interest of revenue. Thus, both the conditions specified under section 263 of the Act are satisfied in this case and it is a fit case to invoke provisions of the said section. 07. In view of the above, the assessment order dated 29/03/2022for the A.Y. 2017-18 is hereby set aside to the file of the Assessing Officer for proper verification of fact and to re-examine the issues considering the aspects discussed in the foregoing paragraphs and decide the issues afresh. However, before arriving at any conclusion, the Assessing Officer shall give reasonable opportunity to the assessee to adduce the evidence and information with regard to the issues involved. The Assessing Officer shall, accordingly, frame the assessment afresh." 4. Aggrieved assessee is now in appeal before this Tribunal. 5. Ld. Counsel for the assessee vehemently argued referring to the written submissions running into 40 pages mainly contending that the re-assessment proceedings were carried out on borrowed satisfaction and the same is invalid and cannot be a subject matter of revision u/s. 263 of the Act. Secondly he stated that ld. AO ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... u/s. 263 is that the re-assessment proceedings carried out in the case of assessee in itself are invalid and bad in law and issued on borrowed satisfaction. We on going through the reasons recorded by the AO for carrying out the re-assessment proceedings note that the same were based on two facts, firstly the addition made in the hands of another assessee Rajendra Babulal HUF u/s. 68 of the Act for the bogus long term capital gain claimed u/s. 10(38) of the Act from sale of Equity shares of Greencrest Financial Services Private Limited. Secondly, information was received from the DDIT (Investigation) Kolkata about the beneficiaries of bogus long term capital gain which involved the name of the assessee also. When these informations were received by the AO and after proper application of mind and also examining the facts of the case from its income-tax return it was found that it is a fit case for issue of notice u/s. 148 of the Act. We therefore are of the considered view that reopening was not based on any borrowed satisfaction rather ld. AO has reason to believe that there is possible escapement of income in the form of bogus long term capital gain. He therefore issued notice u/s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... were put on disposal of penalties only, while attending to the assessment work at regular intervals. From the 1st week of Febraury, 2022 only, efforts have been put on assessment work. (5) The time barring date is 31.03.2022 and there are directions from the higher authorities that there will no extension of time limit. (6) Since the assessee has furnished all the information, some more efforts need to be made to disprove his claim. Then only, a speaking order on the objections of the assessee can be given. (7) The assessee is asking for cross examination of all the persons involved. Identifying those persons, getting their PANs, providing opportunity to them through ITBA and bring the two parties at a particular time is a long procedure, which cannot be done in this fag end of the time barring date. (8) Subsequent to that sufficient time has to be given to the assessee to respond to the reply given on the objections. (9) After that, DAO has to be prepared and sent to risk and review unit. The, SCN+DAO has to be sent to the assessee for his response. After that also, sufficient opportunity has to be given to the assessee to respond. It is very difficult to follow the SOP ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
