https://www.taxtmi.com/caselaws?id=447576 ITAT Kolkata quashed the reopening of assessment under section 147 concerning bogus long-term capital gains from penny stock transactions claimed as exempt under section 10(38). The tribunal found that the AO recorded reasons without independent application of mind, acting on borrowed satisfaction in a mechanical manner rather than forming objective satisfaction. The reopening was based on information from Investigation Wing regarding Quest Financial Service Limited shares, but the AO failed to properly apply mind to the facts. Following Hindustan Lever Limited precedent, the tribunal held that reasons must be independently recorded and cannot be substituted, directing deletion of the addition and allowing the assessee's appeal. en-us Tue, 26 Dec 2023 00:00:00 +0530 Sat, 30 Dec 2023 08:31:31 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=447576 ITAT Kolkata quashed the reopening of assessment under section 147 concerning bogus long-term capital gains from penny stock transactions claimed as exempt under section 10(38). The tribunal found that the AO recorded reasons without independent application of mind, acting on borrowed satisfaction in a mechanical manner rather than forming objective satisfaction. The reopening was based on information from Investigation Wing regarding Quest Financial Service Limited shares, but the AO failed to properly apply mind to the facts. Following Hindustan Lever Limited precedent, the tribunal held that reasons must be independently recorded and cannot be substituted, directing deletion of the addition and allowing the assessee's appeal. Case-Laws Income Tax Tue, 26 Dec 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=447576