2025 (8) TMI 775 - SCH - Income Tax

Special leave petition dismissed where reopening under section 147 relied on investigative material without fresh link to income escapement

SC dismissed the special leave petition, holding that the reasons recorded for reopening under section 147 were based on borrowed satisfaction from ... Reopening of assessment u/s 147 - Reason to believe - assessee involvement in penny share/stock transactions - borrowed satisfaction or independent application of mind by AO HC decided [2024 (6) TMI 1373 - GUJARAT HIGH COURT] on the basis of the information received from DDIT Investigation Unit-5(1), New Delhi, the respondent has formed a prima facie belief that there is escapement of income as the petitioner has earned substantial amount of long term capital claiming the same as exemption u/s 10 (38) - Reasons recorded do not disclose any live link or fresh material to connect the transaction entered into by the assessee with the information in possession of the AO. Therefore, it is clear that the AO has assumed the jurisdiction on the basis of the borrowed satisfaction HELD THAT:- No case for interference is made out in exercise of our jurisdiction under Article 136 of the Constitution of India. Special Leave Petition is accordingly dismissed. Pending application, if any, also stands disposed of. The Supreme Court, exercising jurisdiction under Article 136 of the Constitution of India, dismissed the Special Leave Petition. The Court condoned the delay but found that 'no case for interference is made out.' Consequently, the petition was dismissed, and any pending applications were also disposed of. The order reflects the Court's discretion in granting special leave and underscores the principle that such interference is warranted only when substantial grounds exist, which were absent in this matter.