AI Drafter 
TaxTMI 
TaxTMI 
2023 (2) TMI 974
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....f section 147 of the Act. The petitioner also challenges the order dated 8th February 2022 rejecting the objections of the petitioner to the validity of the notice under section 148 of the Act. 2. Briefly stated the material facts are as under : 2.1 The petitioner is stated to be engaged in the business of stock broking services as well as Undertaking Stock Trades (Pro- Trade) on BSE and NSE in derivative and cash segments which constitutes its business activity. 2.2 It is stated that the resultant Profit/Loss arising from such Pro-trade activity of the petitioner is offered to tax as 'business income/loss' in its return of income. It is stated that delivery based transactions in the nature of purchase and sales of equity shares in the cash segment, as also the sales and purchase of shares on Intra-day basis undertaken on the stock exchanges and sale of futures and options undertaken on the derivative segments on BSE and NSE are subjected to Security Transaction Tax ('STT') which is levied and recovered by the exchanges on a daily basis. 2.3 Return of income was filed by the petitioner for the assessment year 2014-15 on 24th September 2014 declaring a total income of Rs....
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.... STT-03 Sale of equity share (otherwise than by actual delivery) in recognized stock exchange 2257.78 4 STT-04 Sale of option in securities (derivative) in recognize stock exchange 483.38 5 STT-05 Sale of Future (derivative) in recognized stock exchange 1181.31 6 194A Interest other than interest on securities 57.53 7 194C Payment to contractors 0.75 8 194H Commission /Brokerage 0.14 9 194J Professional/ Technical service fee 0.60 Total 4786.01 In view of the above facts and after due application of mind after analyzing all the relevant information in the case of the assessee in totality, I have reason to believe that income of Rs.4786.01/-Lakh has escaped assessment for A.Y.2014-15 and the same is therefore required to be reopened for scrutiny assessment. A notice u/s.148 r.w.s. 147, is, therefore, being proposed to be issued to assessee such income and also any other income chargeable to tax which has escaped assessment which comes to notice subsequently in the course of the assessment proceedings. 5. Objections were filed on 30th December 2021 to the reop....
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....the original assessment proceedings. 12. A reference to the reasons recorded would clearly show that not a whisper has been made by the Assessing Officer that there was any such failure on the part of the assessee. The consequence is clear that the Assessing Officer had not satisfied himself on this important jurisdictional aspect and therefore must be deemed to have arbitrarily proceeded to initiate the reassessment proceedings by issuing the notice impugned, which makes it unsustainable. 13. In Hindustan Lever Ltd. V/s. R. B. Wadkar, Assistant Commissioner of Income-Tax and Ors. 2004 ITR 332 Vol.268., it was held : "......The reasons recorded should be clear and unambiguous and should not suffer from any vagueness. The reasons recorded must disclose his mind. The reasons are the manifestation of the mind of the Assessing Officer. The reasons recorded should be self-explanatory and should not keep the assessee guessing for the reasons. Reasons provide the link between conclusion and evidence. The reasons recorded must be based on evidence. The Assessing Officer, in the event of challenge to the reasons, must be able to justify the same based on material available on....
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.... raised by him during the assessment proceeding even where he is satisfied then it would be impossible for the Assessing Officer to complete all the assessments which are required to be scrutinized by him under Section 143(3) of the Act. Moreover, one must not forget that the manner in which an assessment order is to be drafted is the sole domain of the Assessing Officer and it is not open to an assessee to insist that the assessment order must record all the questions raised and the satisfaction in respect thereof of the Assessing Officer. The only requirement is that the Assessing Officer ought to have considered the objection now raised in the grounds for issuing notice under Section 148 of the Act, during the original assessment proceedings. There can be no doubt in the present facts as evidenced by a letter dated 8 September 2012 the very issue of taxability of sale of shares under the head capital gain or the head Profits and gains from business was a subject matter of consideration by the Assessing Officer during the original assessment proceedings leading to an order dated 12 October 2010. It would therefore, follow that the reopening of the assessment by impugned notice da....