2014 (5) TMI 225
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....ale of shares. For the Assessment Year 2006-07 the return of income declared by the assessee was at Rs.1.51 lakhs (rounded off). The Assessing Officer in scrutiny assessment issued notice under section 143(2) of the Income Tax Act, 1961("the Act" for short) calling for information. Specific query was raised with regard to treatment accorded to the activities of investment in shares as investment and not as business in the table shown below:- Name of Scrip/Units Quantity (Units) holding Purchase date & quantity Purchase amount Sale date and quantity Sale amount Dividend received if any Dividend date STCG/STCL 1 2 3 4 5 6 7 8 9 *** *** *** (d) Reasoning behind the treatmen....
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....2006-07 has been issued under section 148 of the Act by the Assessing Officer inter alia stating that he has reason to believe that income chargeable to tax for the Assessment Year 2006-07 has escaped assessment within the meaning of section 147. The petitioner called for supply of detailed reasons recorded by the Assessing Officer and vide communication dated 1.8.2013 the Assessing Officer supplied the reasons for reopening. 5. The petitioner responded to such notice by furnishing his reply dated 28.10.2013, strongly objecting to such reopening by urging that his case was taken up in scrutiny assessment in the original assessment and the very issue had been examined by the Assessing Officer in the original assessment proceedings. He, ther....
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....d in the interest of justice; e. To provide for the cost of this petition." 8. We have heard learned counsel Mr. Hardik Vora for the petitioner, who has strenuously urged that in the impugned notice dated 13.2.2013 for reopening of the assessment concerns previously framed assessment after scrutiny, there is not even a suggestion, according to the learned counsel, of any failure on the part of the petitioner to disclose fully and truly all material facts necessary for the assessment in the said notice and therefore, such notice of reopening beyond the period of four years is without jurisdiction. He further pointed out from the material on record that the very issue was closely examined and....
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....ice of reopening of assessment is issued in absence of any failure on the part of the assessee to disclose fully and truly all material facts, the same would have no validity. In the original assessment proceedings, the Assessing Officer, if has examined the claim in detail after raising the queries fully answered by the assessee, such action of reopening cannot be sustained in such circumstances. It can be seen from the reasons recorded and as rightly contended on behalf of the petitioner that there is nothing in the notice to indicate that the petitioner had failed in any manner to disclose fully and truly all material facts. From the notice itself, it becomes very clear that the Assessing Officer, on perusal of the case records, had form....
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....e that the petitioner had not fully and truly disclosed all material facts. In other words, such notice is based on the material which was very much available before the Assessing Officer and he had examined the very issue threadbare while framing original assessment. 14. This Court in the case of Sun Pharmaceutical Industries Ltd. v. Dy. CIT reported in [2013] 353 ITR 450 was examining the validity of notice of reassessment issued after the expiry of period of four years, where it held that the notice of reopening of an assessment must be adjudged on the basis of the reasons recorded while issuing the notice. If a new ground occurs to the Assessing Officer after he has recorded the reasons for reopening the assessment and issue notice for....
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.... period of four years, two conditions are required to be fulfilled. Simultaneously (1) Whether the Income Tax Officer must have reason to believe that income from profit and gains chargeable to tax have been under-assessed (2) Such under-assessment has occurred on account of omission or failure on the part of the assessee to make the return of his income or disclose fully and truly all material facts necessary for assessment for that particular year. For fulfillment of such conditions which are conditions precedent, jurisdiction is conferred upon the Assessing Officer for issuance of notice under section 148. All material facts are necessary to be disclosed by the assessee and what are the material facts necessary for the purpose of determi....