Court dismisses premature petition, directs prompt objection disposal. Revenue restrained pending legal action. No view on case merits.

The Court found the petition premature and chose not to entertain it at that stage. The Court directed the authority to dispose of the objections within two weeks. If an adverse order is passed, the Revenue was instructed not to implement it for two weeks, allowing the petitioner to take legal action if necessary. The Court clarified it had not expressed any view on the merits of the case, leaving the decision to be made based on its own strength.

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Issues:
Challenge to notice seeking to reopen income tax assessment for the assessment year 2015-16 under Section 148 of the Income Tax Act.

Analysis:
The petitioner, engaged in trading shares, challenged a notice dated 31.03.2021 seeking to reopen income tax assessment for the year 2015-16. The reasons for reopening were based on the petitioner's alleged claim of bogus LTCG on penny stock transactions amounting to Rs. 1,18,41,833. The petitioner sought to quash the notice and stay further proceedings for the assessment year. The Court granted protection to the petitioner and heard arguments from both sides.

The respondent raised objections regarding the maintainability of the petition, arguing that objections had not been disposed of yet, making the petition premature. The Court considered the arguments presented by both parties, noting that objections can be directed to be disposed of even during the pendency of the petition. The Court highlighted previous cases where assessments were nil, emphasizing the need for objections to be considered by the authority concerned.

Ultimately, the Court found the petition premature and chose not to entertain it at that stage. The Court directed the authority to dispose of the objections within two weeks from the date of the order. If an adverse order is passed, the Revenue was instructed not to implement it for two weeks, allowing the petitioner to take legal action if necessary. The Court clarified that it had not expressed any view on the merits of the case, leaving the decision to be made based on its own strength. The matter was disposed of accordingly.

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