TaxTMI 
TaxTMI 
2023 (1) TMI 855
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....d Rs. 2,17,773/- as exempt income u/s 10(38) on account of long term capital gains from sale of listed shares amounting Rs. 3,50,280/- on which STT was paid and including brokerage expenses etc total sale expenses of Rs. 637/- were incurred by the assessee. These shares were purchased by the assessee on 07.07.2005. A notice u/s 148 of Income Tax Act, 1961 dated 28.03.2017 was received from Income Tax Officer, Ward 40(3), Delhi. In response to this the assessee filed reply dated April 5, 2017 that his original return may be taken as return filed pursuant to the provisions of section 148 of the Act. Assessee was provided with copy of the reasons recorded on 8.5.2017 against which he has filed the objection on June 5, 2017. He was then served with notice u/s 143(2) dated 03.05.2017 by the Income Tax Officer, Ward 40(3), Delhi. On 8.8.2017, the assessee received a notice u/s 148 of the Act and then notice u/s 143(2) dated 04.09.2017 from ward 17(4), Delhi. A final notice dated 24/27-11-2017 was issued to the assessee, wherein it was informed that the income Tax Officer, Ward 40(3) has transferred the assessment proceedings to Ward 17(4) on 18.07.2017. This show cause notice was duly re....
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....Kumar Kayan or Mr. Sunil Kumar Kayan was considered to be not relevant as in the reasons recorded, it was clearly mentioned that the case of the assessee was reopened on the basis information received from Investigation Wing which includes other brokers also. 2.4 Thus Ld. AO was not satisfied with the submissions of assessee and after discussing the modus operandi and the Investigation Wing's findings made an addition of Rs. 3,50,280/- considering this amount to be introduced / credited by the assessee in the books of accounts out of these purported share sales receipts. 3 Ld. CIT(A) had sustained addition and assessee is in appeal raising following grounds :- "1. The ld. CIT(A) has erred in law and on facts by upholding the re-opening the assessment. a. Even if the reasons were not recorded by the ld. AO i.e. ITO Ward 17(4) himself. b. Even if the ITO recording the reasons i.e. ITO Ward 40(3) was not having the jurisdiction of the assessee. c. Even if the ld. ITO recording the reasons had not applied his mind independently. 2. The ld. CIT(A) has erred in law and on facts by upholding the re-assessment. a. Even if the ld. AO has assumed the jurisdiction on transfer of....
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....sessee there is no observations of any transaction being investigated and found suspicious. It was submitted that the satisfaction recorded is without application of mind and factually incorrect information incorporated as the money was not received from the two named suspect Kayan brothers but the transactions were effected with from one S.K.Khemka. 6.2 Referring to contract note of the purchase of shares it was submitted that assessee had purchased the shares on 07.07.2005 for 1,31,870/- and sold the shares on 12.03.2010 for 3,49,643/- and the circumstances nowhere indicates, assessee being involved into the changing the colour of his money. 7. On the other hand Ld. DR submitted there is no error in the findings of the Ld. Tax authorities below who have sufficiently examined the modus operandi and the material collected by investigation wing. It was submitted that the reasons if read as a whole would show that independently of the investigation's wings material and information Ld. AO had considered the circumstances. 8. The bench is of considered opinion that the matter can be disposed off by a discussion on ground no. 1(c) and 2(d) by which the exercise of jurisdiction of reo....
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.... have yielded huge long term capital gains to the beneficiaries and it is very much possible that the assesses would have taken it as exempt income u/s 10(38) of the Income Tax Act, 1961. The assessee has invested in scrip i.e. Konarak Commerce Industries Limited, and claim LTCG of Rs.3,50,280/- and on the perusal of ITR filed by the assessee for the AY 2010-11, it reveals that the assessee has shown income of Rs.2,03,895/- and tax liability created of Rs.4,882/- which shows that the financial position is not very sound. Keeping in view of the facts mentioned above , I have reason to believe that the income of Rs. 3,50,280/- has escaped assessment on the reason of the failure on the part of the assessee to disclose fully and truly all material facts necessary for assessment as per provision of the section 147 of the I.T. Act, 1961. In this case, escaped income is more than one lakhs and within the meaning of section 149 of the IT Act' 1961. In view of above, it is a fit case for issuance of notice u/s 148 of the Income Tax Act, 1961. Dated 23/3/2017 Sd/- (ATUL KUMAR SINGH) Income Tax Officer, Ward-40(3), New Delhi"" 9.1 Appreciating the aforesaid it comes that while re....