2019 (2) TMI 456

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.... premise that he had no taxable income, the petitioner had not filed return for the said assessment year 2011-12. The Assessing Officer, however, was of the opinion that the petitioner had entered into franchises of Rs. 18.82 crore in Commodity Exchange. The Assessing Officer further noticed that the petitioner had not filed return of income for the said assessment year. He therefore, issued the impugned notice to re-assess the petitioner's income chargeable to tax. In order to do so, he had recorded the following reasons:- "REASONS FOR REOPENING OF ASSESSMENT U/S 147 OF THE I.T. ACT, 1961 1. Details of assessee The assessee is an individual. It is seen from ITD system that the assessee has not filed the return of income for....

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....nder consideration. (ii) No return of income has been filed by the assessee for AY 2011-12. (iii) The Profit/Loss earned from Commodity transactions remains unexplained and this income exceeding Rs. 1 Lakh or more has escaped assessment since it has not been disclosed by the assessee as no return is filed by him. 6. Basis of forming reason to believe and details of escapement of income In view of the above, I have reason to believe that the income chargeable to tax of more than Rs. 1 Lakh for AY 2011-12 has escaped assessment within the meaning of provisions of Section 147 of the Income Tax Act, 1961 as no return of income has been filed by the assessee for AY 2011-12. 7. In this case, more than ....

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....igures are that the petitioner had made purchases worth Rs. 16.84 crore and sold commodities worth Rs. 16.82 crore and thereby suffered a loss. The Assessing Officer did not examine this aspect though brought to his notice in the objections. 4. On the other hand, learned counsel Mr. Walve relied on the reasons recorded by the Assessing Officer and contended that despite the activity of purchase and sale of commodities of sizable value, the petitioner had not filed return of income. Whether he had earned substantial income or not from such activity can be examined only during the assessment. 5. Having heard the learned counsel for the parties and having perused the documents on record, firstly we may record that the Assessing Officer h....