TaxTMI 
TaxTMI 
2023 (2) TMI 511
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....ear was not offered to tax. Further, form the internal system developed by the department, viz., I-Taxnet; it was found that the assessee's name appears in the list of Non-Filers Monitoring System (NMS). Meaning thereby, the assessee had not filed any return of income for the impugned assessment year. From the system generated information, it was noticed by the Assessing Officer that in the year under consideration, the assessee had entered into transaction of sale and purchase in National/Multi-commodity exchange, amounting to Rs.27,05,30,735/- and has made foreign remittances amounting to Rs.79,70,54,971/-. As observed by the Assessing Officer, in absence of any details due to non-filing of return of income, NMS notice was sent to the assessee to furnish necessary information on financial transaction/activities made during the year. However, the notice remained un-complied. Thus, ultimately, the Assessing Officer, forming a belief that income chargeable to tax in the year under dispute has escaped assessment, reopened the assessment under section 147 of the Act by issuing a notice under section 148 of the Act. As alleged by the Assessing Officer, neither the assessee complied wit....
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....nsaction, the assessee had neither made any other share transactions, nor made any other remittances over and above Rs.26,56,35,337/-. The assessee further submitted that the other two transactions alleged by the Assessing Officer and subject matter of addition in the assessment order are duplication of this transaction. To substantiate its claim, the assessee furnished certain additional evidences before learned DRP. After admitting the additional evidences, learned DRP forwarded them to the Assessing Officer for verification and furnishing the report thereon. As observed by learned DRP, without offering any comment/observation on the additional evidences furnished by the assessee, the Assessing Officer simply stated that the additional evidences should not be admitted and reiterated the stand taken in the assessment order. After considering the submissions of the assessee in the context of evidences brought on record, learned DRP, being convinced that the assessee had actually made a single remittance of Rs.26,56,35,337/-, whereas, other two amounts forming part of aggregate amount of Rs.79,7054,971/- considered by the Assessing Officer as three separate transactions, are in real....
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....mited (NSDL). ii. Copy of client statement of account for the period 01.04.2011 to 31.03.2012 issued by M/s. DSP Merrill Lynch Limited. iv. Copy of Form 15CB dated 15.11.2011 v. Copy of Form 15CA dated 16.11.2011 9. It is evident, though, learned DRP forwarded the additional evidences to the Assessing Officer seeking his report, however, the Assessing Officer did not offer any meaningful comment on the merits of the evidences furnished, except stating that the additional evidences should not be admitted. Further, in the report, the Assessing Officer reiterated the stand taken in the draft assessment order by stating that the transaction relating to sale in National Commodities Exchange (NSE) of Rs.27,05,30,735/- and foreign remittance amounting to Rs.79,70,54,971/- still remains unexplained. After factually verifying the materials and evidences brought on record, learned DRP, was convinced that the only transaction made by the assessee in the year under consideration is in relation to sale of 92,50,000 equity shares of Rain Commodities Ltd. for a consideration of Rs.26,57,84,297/-. Except this transaction, the assessee had neither made any other transa....
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....r: Trade Date Due Date Exch. Narration Voucher No. Debit (Rs.) Credit (Rs.) Balance (Rs.) 14.11.2011 16.11.2011 BSE Settlement Obligation N/1112154 2011111 4/775/2 265,784,297 265,784,297 22.11.2011 22.11.2011 BSE DP charges deducted for Client Oxbow Carbon And Minerals LLC from total remittance 2011112 2/16/0 148,960 265,635,337 22.11.2011 22.11.2011 BSE 4 Payment Entry/BSE//111215 2011112 2/61/1 265,635,337 00.00 Total 265,784,297 265,784,297 Closing Balance 0 0 2.9 The aforesaid documents are seen to be consistent with one another and reflect the same transaction details including number of shares, trade date and sale consideration amount. The same is also reflected in Form 15CA dated 16.11.2011 and Form 15CB auditor certification dated 15.11.2011, which shows remittance of INR 26,47,84,297 on account of the said share sate transaction. The difference between the amounts reflected in sl. ....
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....11. At this stage, it is necessary to refer to certain provisions of section 144C of the Act. As per sub-section (8) of section 144C, the DRP may confirm, reduce or enhance the variation proposed in the draft assessment order and issue necessary direction to the Assessing Officer. Sub-section (10) of section 144C makes it clear that every direction issued by learned DRP shall be binding on the Assessing Officer. Sub-section (13) of section 144C provides that after receiving the direction of learned DRP, the Assessing Officers shall in conformity with the direction complete the assessment without providing any further opportunity of being heard to the assessee. The requirement of providing a personal hearing to the assessee at the final assessment stage has been dispensed with only for the reason that the Assessing Officer has no other scope but to implement the direction of learned DRP. 12. In the facts of the present appeal, the only direction of learned DRP is to delete the addition made in the draft assessment order. Therefore, the clear mandate given to the Assessing Officer by learned DRP is to restrict himself to delete the addition of Rs.53,14,19,634/-. Whereas, the Asses....