9911796707
TMI Blog2025 (5) TMI 1336X X X X Extracts X X X X X X X X Extracts X X X X ..... . The revenue has raised the following substantial questions of law for consideration : (a) Whether on the facts and in the circumstances of the case and in law the Learned Income Tax Appellate Tribunal (ITAT) was justified in law by not considering the fact that entire transactions were stage managed with object to facilitate the assessee to plough back its unaccounted income in the form of fictitious Long Term Capital Gains and claim of bogus exemption? (b) Whether on the facts and in the circumstances of the case and in law the Learned Income Tax Appellate Tribunal (ITAT) was justified in law by not considering the fact that assessee had indulged in manipulation of the share prices of penny stock M/s. Tuni Textiles Mils Ltd with an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent, if he has a cause or justification to know, or suppose, that income has escaped assessment. The expression cannot be read to mean that the Assessing Officer should have finally ascertained the fact by legal evidence or conclusion? 3. We have heard Mr. Tilak Mitra, learned senior standing Counsel assisted by Mr. Prithu Dudheria for the appellant/revenue 4. The notice sent to the respondent/assessee was served on 1st October, 2024 as per the track information filed along with the affidavit of service but none appears for the respondent/assessee. 5. We have elaborately heard the learned senior standing counsel appearing for the appellant/revenue and carefully perused the materials placed on record and the reasoning given by the learne ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... forms an opinion that income has escaped assessment to tax. The Tribunal held that the assessing officer has not applied his mind for reopening the case that too after four years as the assessee has furnished all details of the alleged transaction in his income tax return and has not adhered to the standard operating procedure. 6. The learned Tribunal referred to a decision of the Coordinate Bench of the Tribunal in the case of Jai Prakash Gupta Vs. ITO in ITA No. 2142/Kol/2019 dated 18.06.2021 for the assessment year 2013-14 and held that the reopening was bad in law and, accordingly, allowed the assessee's appeal. 7. The Revenue being aggrieved by such order are before us by way of this present appeal. 8. The first aspect which we need ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessment. It was further held that the expression cannot be read to mean that the assessing officer should have finally ascertained the fact by legal evidence or conclusion and that the function of the assessing officer is to administer the statute with solicitude for the public exchequer with an inbuilt idea of fairness to taxpayers. Further, a reference was made to the decision in the case of Central Provinces Manganese Ore Co. Ltd. Vs. ITO reported in (1991) 4 SCC 166 and it was held that at the initiation stage, what is required is "reason to believe", but not the established fact of escapement of income. Further, at the stage of issue of notice, the only question is whether there was relevant material on which a reasonable person could ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... elating to the transactions done by the assessee in respect of purchase of shares of M/s. Tuni Textiles Mills Ltd. and noted that the value of the shares of the assessee is almost 4.5 times in a span of one year and 2 months resulting in huge capital gains to the assessee. Thereafter, the assessing officer has verified the contract note and the share certificate submitted by the assessee and other details of the transactions done by the assessee as well as the details furnished in the return of income and then has stated that the facts and circumstances surrounding the transaction of shares of M/s. Tuni Textiles Mills Ltd. and subsequent earning of exempt LTCG by the assessee through the transaction in the said shares clearly indicate that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s of M/s. Tuni Textiles Mills Ltd. by the assessee was a pre-arranged transaction in the form of accommodation entry managed through collusive transactions by group of entry operators and shell entities. Thereafter the assessing officer has taken note of the various decisions, namely, CIT Vs. Durga Prasad More reported in (1971) 82 ITR 540(SC), Sumati Dayal Vs. Commissioner of Income Tax reported in (1995) 214 ITR 801 (SC), applied the test of human probabilities as propounded in the said decisions and then completed the assessment and has pointed out that before finalizing the assessment a final show cause notice was issued on 18.09.2021 for which the assessee submitted reply on 22.09.2021 and the said reply was also considered and the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
