https://www.taxtmi.com/caselaws?id=450600 The Bombay HC quashed a reassessment notice u/s 148 regarding penny share transactions. The petitioner had disclosed long-term capital gains under IDS 2016 under protest. The AO arbitrarily deemed 5% commission expenses on share sales without evidence of actual brokerage payments. The court held that relying on IDS declarations violated natural justice principles, and ad-hoc disallowances without specific defects were unacceptable. Since the petitioner had disclosed all material facts during original assessment proceedings and the AO had previously considered the share transactions, the reopening constituted mere change of opinion rather than valid reasons for escaped income assessment. en-us Mon, 04 Mar 2024 00:00:00 +0530 Mon, 09 Jun 2025 16:37:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=450600 The Bombay HC quashed a reassessment notice u/s 148 regarding penny share transactions. The petitioner had disclosed long-term capital gains under IDS 2016 under protest. The AO arbitrarily deemed 5% commission expenses on share sales without evidence of actual brokerage payments. The court held that relying on IDS declarations violated natural justice principles, and ad-hoc disallowances without specific defects were unacceptable. Since the petitioner had disclosed all material facts during original assessment proceedings and the AO had previously considered the share transactions, the reopening constituted mere change of opinion rather than valid reasons for escaped income assessment. Case-Laws Income Tax Mon, 04 Mar 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=450600