TaxTMI 
TaxTMI 
2023 (2) TMI 870
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....order of assessment dated 22nd March 2022 passed under section 147 read with section 144/144B of the Act as bad and illegal and in excess of jurisdiction. 2. Briefly stated the material facts as under : 2.1 The petitioner fled its return of income for the assessment year 2014-15. The return was processed under section 143(3) of the Act by the Assessing Officer ('AO'). The issues pertaining to the petitioner's investment in NCL Research and Financial Limited were gone into, which investment was found to be bogus by the AO leading to an addition of Rs.27,27,657/-. It needs to be stated that the assessee had claimed in its return that it had purchased 2000 shares in a non-listed company, NCL Research and Financial Limited for a consideration....
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....5 on the ground that income chargeable to tax had escaped assessment within the meaning of section 147 of the Act. 4. Reasons supplied to the petitioner for the reopening of the assessment read as under : Brief details of the assessee : The assessee filed its return of income for the AY 2014-15 on 30.09.2014 declaring total income of Rs.9,65,850/-. Scrutiny assessment u/s 143(3) of the Income Tax Act, 1961 was completed on 28/12/2016 assessing total income at Rs.37,08,293/-. Brief details of information collected by the AO : It is seen from the assessment record that assessee has purchased shares of the scrip NCL Research & Financial Ltd. For Rs.3,58,343/- and later sold it for a consideration of Rs.30,86,000/-. The assessee has ....
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....ioned above, I have reason to believe that income to the extent of Rs.3,60,135/- chargeable to tax has escaped assessment in the hands of the assessee. The case of the assessee clearly falls in the provisions of Explanation 2(c) to Section 147 of the I.T. Act, 1961. In this case, more than four years have lapsed from the end of assessment year under consideration. Hence, necessary sanction to issue notice u/s.148 of the Act for the A.Y.2014-15 is sought from the Principal Commissioner of Income Tax-19, Mumbai as per the provisions of Section 151(1) of the I.T.Act, 1961. 5. Objections were filed by the petitioner which specifically stated that the reopening was void ab-initio as the issue had already been considered at length by the AO ....
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....e truly and fully any material fact necessary for his assessment for that assessment year, and secondly, that there ought to have been some tangible material before the AO, based upon which, he would form his reason to believe that income had escaped assessment. 10. From the record, it would be very clear that the issue with regard to the petitioner's investment in the scrip of NCL Research & Financial Ltd. had not only been specifically gone into by the AO but the same had been found to be bogus leading to an addition of Rs.27,27,657/- to the income of the assessee. All the relevant material facts were, therefore, before the AO, which led to such an addition. 11. In the reasons recorded, the AO, in the reassessment proceedings, has not s....