AI Drafter 
TaxTMI 
TaxTMI 
2020 (4) TMI 479
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....se are that the assessee has filed his return of income on 14.9.2006 declaring total income at Rs. 1,36,750/-. This return was processed under section 143(1) of the Income Tax Act, 1961 on 31.3.2007. The ld.AO thereafter reopened the assessment by issuance of notice under section 148 of the 28.3.2013. In response to the notice, the assessee has filed his return of income, and also sought copy of reasons recorded by the AO. The assessee thereafter filed an objection to reopening, and those objections have been rejected by the ld.AO. Copies of reasons, objection filed by the assessee and order of the AO rejecting the objection dated 22.2.2014 are placed on paper book from page no.1 to 14. The AO thereafter passed re-assessment order und....
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....evant assessment year, but before six years. Taking us through section 149 of the income-tax Act, the ld.counsel for the assessee pointed out that this section contemplates limitation for issuance of notice under section 148 of the Act. As per clause (b) of sub-section 1, a notice under section 148 could be issued after expiry of four years, but before end of six years from the relevant assessment, if income escaped assessment has exceeded one lakh. In the present case, the AO has not quantified the amount which has escaped the assessment. Therefore, how it could be ascertained that the notice issued under section 148 is within the limitation? He submitted that this notice is without jurisdiction. For buttressing his contentions, he made....
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....sessee has generated bogus long term capital and claimed exemption under section 10(38) of the Income Tax Act. These transactions have been carried out through Gold Star Finvest Securities P Ltd., Mahasagar Securities P.Ltd. and other entities managed by the directors of Mahasagar Securities. In the order, while rejecting the objections, the AO has made reference to the information received from National Stock Exchange relating to M/s.Alliance Intermediaries and Network i.e. the concern through whom the assessee has undertaken his transaction. 7. I have duly considered rival submissions and gone through the record carefully. The reasons recorded by the AO and supplied to the assessee vide letter dated 28.5.2003 reads as under: "....
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....t year under consideration where in the claim has been made of having liquidated the purported assets held in the balance sheet as at 31/03/2005 and such liquidation has resulted in gain to the assessee, which needs to be brought to tax. On the basis of material available on record as well as the information received, i am of the opinion and I have reason to believe that the assessee's income chargeable to tax has escaped assessment for the year under consideration due to failure of the assessee to disclose fully arid truly all the material facts in the Return of income. Therefore, I am satisfied that it is a fit case for initiating proceeding u/s.148 of the I.-T. Act....: 8. A perusal of the above reason would indicate that....
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....re is no material on record to indicate the extent of income which has escaped assessment. In fact, as observed hereinabove, there is nothing to indicate that the AO has reason to believe that any income whatsoever has escaped assessment. In the circumstances, on this count also, the assumption of jurisdiction under s. 147 of the Act is invalid.: 9. Since in the present case also notice has been issued after an expiry of four years from the end of the relevant assessment year, but before six years. This notice could be issued within limitation if the AO has made out a case that income exceeded rupees one lakh has escaped assessment. No such finding or observation or reference has been made in the reasons extracted (supra). In the open....