9911796707
TMI Blog2025 (5) TMI 875X X X X Extracts X X X X X X X X Extracts X X X X ..... ompany is engaged in the business of making investment in telecom sector and related ventures and to promote the formation and mobilization of capital investment on behalf of its promoters. The return of income was filed on 28.09.2013 declaring total loss of Rs. 1,43,63,227/-. The assessment u/s 143(3) of the Act was completed on 17.03.2016 wherein loss declared by the assessee was accepted. Thereafter, based on the information available in insight portal, the case of the assessee was reopened on the allegation that the assessee has obtained bogus fictitious loss by trading in shares of penny stock company namely M/s Stampede Capital Ltd. of Rs. 44,12,308/-. Thereafter in the order passed u/s 143(3)/ 147 of the Act, loss claimed from the tr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the Appellant without any material on record. 6. The Ld. CIT(A) erred in law and on facts and circumstances of the case in holding that the Appellant paid any commission for acquiring accommodation entry and adding it to the income of the appellant u/s 69C of the Act. 7. The Ld. CIT(A) erred in law and on facts and circumstances of the case in holding that Section 69C of the IT Act is applicable in the present case. 8. The Ld. CIT(A) erred in law and on facts and circumstances of the case in upholding the reopening the assessment u/s 148 of the IT Act. 9. The Ld. CIT(A) has erred on facts and in law in not appreciating that the reopening of assessment u/s 148 is bad in law as it constitutes a change of opinion as the original ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed. To confirm these facts, an affidavit of the Director of the assessee company is filed before us which read as under: 5. The Ld. AR placed reliance on the judgment of Hon'ble Bombay High Court in the case of Infinity.com Financial Securities vs. ACIT, wherein it is held that reopening of assessment cannot be sustained when the issue has already been examined during the scrutiny. He further placed reliance on the Hon'ble Jurisdictional High Court in the case of Sashi Mohan Garg vs. ITO reported in 157 Taxmann.com 549 (Del.) wherein the Hon'ble High Court has held that the reassessment proceedings were triggered against the petitioner without application of mind solely on the basis of information received from Kolkata Division of Investig ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessment u/s 143(3) and, therefore, the action of AO in reopening the assessment u/s 148 is correct and he prayed for the confirmation of the same. 7. We have heard the rival submissions and perused the materials available on record. From the perusal of the assessment order from page 3 to 25, we find that the Assessing Officer has reproduced the information available in insight portal of the department with respect to the company M/s Stampede Capital Pvt. Ltd which described the back ground of the company, its' shares holding pattern, analyses of the trade etc. are given. Thereafter, general modus operandi was discussed which is not applicable to the present case as assessee has purchased and sales through online mode, thereafter, the ce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... apital gains - Assessing Officer issued reopening notice against assessee - It was noted that impugned notice merely alleged that assessee had taken bogus profits through scrips which was a penny stock -However, there was no material or evidence to suggest that transactions in penny stocks were bogus - Whether, therefore, impugned reopening notice issued against assessee was not valid - Held, yes [Paras 19 to 23] [In favour of assessee]" 9. In the instant case, the entire case of the Revenue rests on Information available in insight portal which was collected in some other cases and nowhere, it was established that the assessee was part of the beneficiary. Further the AO has failed to appreciate the fact that the assessee was having closin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... petitioner assessee and thereafter, is required to form independent opinion that income has escaped assessment. Without forming such opinion solely and mechanically relying upon the information received from the other sources, the respondent-Assessing Officer could not have assumed the jurisdiction to reopen the assessment based on such information. This Court in case of Raajratna Stockholdings (P.) Ltd. v. Asstt. CIT [2025] 170 taxmann.com 473 (Gujarat)/(judgment dated 25.11.2024 rendered in Special Civil Application No.3696 of 2022) in similar circumstances has quashed and set aside the impugned notice issued under section 148 of the Act and consequential order disposing off the objections raised by the petitioner." 10. In view of the fa ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
