TaxTMI 
TaxTMI 
2004 (4) TMI 61
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....ition that the main source of income of the petitioner is from house property. The petitioner enjoys income from the house property which is said to be commercial premises. It is alleged in paragraph 7 of the petition that during the financial year 1999, the petitioner purchased 8,400 shares of M/s. Charismatic Trade Links Ltd. and the purchase of these shares was duly shown in the relevant income-tax return for that year. A true copy of the purchase certificate dated June 4, 1999, has been annexed as annexure I to the writ petition. It is alleged in paragraph 8 of the petition that during the assessment year 2001-2002, the aforesaid shares were sold to one M/s. Yadav and Co. In paragraph 9 of the petition it is stated that this sale of s....
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....rding to the respondents. In compliance with the notice under section 148 the petitioner requested that the return already filed by him may be treated as compliance of the said notice. He also requested that copy of the reasons recorded for initiation of reassessment proceedings under section 148 may be supplied to him. On December 24, 2003, respondent No. 1 has supplied the reasons vide annexure 7 to the writ petition. A perusal of the reasons shows that information relating to bogus entries for long-term capital gains/loss, share dealings, etc., was received from the Director of Income-tax (Investigation) Unit-I, New Delhi, vide letter dated July 19, 2002, along with the investigation report prepared by the Additional Director of Income-....
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....alleged in paragraph 22 of the writ petition that the sale value of shares has been disclosed and has been accepted and there is no dispute in respect of the sale value of the shares. The complete sale value has been shown in the original return of income filed by the petitioner and hence it cannot be said to be a case of escaped assessment. The Department has filed a counter-affidavit and we have perused the same. In paragraph 4 of the counter-affidavit it is stated that the petitioner is one of the links in a chain which indulges in bogus transactions in long-term capital gains/short-term capital gains/share capital/gifts, etc. It is alleged that the petitioner has a very chequered history which was unravelled during an investigation, wh....
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....actions. In paragraph 5 of the counter-affidavit it is stated that the petitioner has falsely shown share proceeds receipt of Rs. 5,98,800 on which he had only paid long-term capital gains tax. This amount has already been investigated and the balance is in the process of being investigated. The amounts shown are nothing but the receipt of undisclosed income for which there is ample material before the Assessing Officer. The petitioner has cleverly shown his undisclosed income under the head "Long-term capital gain" which is assessed at 10 per cent., which is a special rate, although the income of the petitioner should be shown under the head "Income from other sources" and was to be taxed at the normal rate. In paragraph 6 of the counter....
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....titioner has concealed all these relevant materials. The earlier assessment was done under section 143(1) of the Income-tax Act, in which there was no scrutiny of the material. In paragraph 21 of the counter-affidavit it is stated that the petitioner has concealed income in his return. A sum of Rs. 7,88,298 was taxable under the normal rate under the head "Income from other sources" but it had been shown under the head "Long-term capital gain" and was taxed at a special rate of 10 per cent. Hence, the petitioner has furnished inaccurate income and has also shown lesser income and has been assessed at a lower rate. The contention of the petitioner that the Department has accepted the sale of shares is misleading. There is no finding of the ....