Opportunity to furnish unsecured-loan confirmations is required before reassessment initiation; proceedings require fresh consideration after taxpayer...
Under-reporting on a first reassessment return attracts penalty, while enhanced misreporting penalty requires proof of a statutory misreporting catego...
Reopening of assessment u/s 147 for "non-genuine loss" on account of assessee's transactions in futures and options (F&O) was unjustified. The reasons recorded did not disclose any income escaping assessment as the effect of loss and profit was nil. No information showed assessee earned any income not offered to tax. No correlation was established between assessee's transactions resulting in equal loss and profit and observations of Apex Court or SEBI order on manipulative reversal trades. Merely referring to Apex Court order and SEBI observations without co-relating assessee's identical loss and profit contracts was insufficient to conclude income escaped assessment. No effect on assessee's income due to F&O loss and profit. Reasons recorded cannot be said to form reason to believe income escaped assessment for assuming jurisdiction u/s 148 to reopen assessment for the year. Decided in favor of assessee.
Reopening of assessment u/s 147 for "non-genuine loss" on account of assessee's transactions in futures and options (F&O) was unjustified. The reasons recorded did not disclose any income escaping assessment as the effect of loss and profit was nil. No information showed assessee earned any income not offered to tax. No correlation was established between assessee's transactions resulting in equal loss and profit and observations of Apex Court or SEBI order on manipulative reversal trades. Merely referring to Apex Court order and SEBI observations without co-relating assessee's identical loss and profit contracts was insufficient to conclude income escaped assessment. No effect on assessee's income due to F&O loss and profit. Reasons recorded cannot be said to form reason to believe income escaped assessment for assuming jurisdiction u/s 148 to reopen assessment for the year. Decided in favor of assessee.
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TaxTMI 
TaxTMI 
of 4915 
