TaxTMI 
TaxTMI 
2023 (11) TMI 27
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....e Tax Act, 1961 (the Act) concerning AY 2010-11. 2. The grounds of appeal raised by the assessee read as under: "1. That the ld. CIT(A) has erred in not quashing the proceedings initiated u/s. 147. 2. That the ld. CIT(A) has erred in not appreciating the law that no other addition may survive, unless & until the reportedly escaped income (Rs. 10,02,865/-) is assessed. 3. That the ld. CIT(A) has erred in not disapproving the Id AO's finding that the Short Term Capital Gain of Rs. 1,37,643/-, (which arose on sale of 26500 shares of Amulya Leasing & Finance Limited) were bogus. 4. That the ld. CIT(A) has erred in upholding the treatment given by the Id AO to the amount of Short Term Capital Gain of Rs....
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....le of securities amounting to Rs. 3,13,227/-. The ld. counsel contended that the assessment of income other than income allegedly escaped assessment in the reasons recorded is contingent upon the assessment of income allegedly escaped assessment in the reasons recorded. The ld. counsel thus contended that the re-assessment framed in the instant case is totally divorced from the reasons recorded and thus the impugned additions are not sustainable in law. 4. The reasons recorded by the Assessing Officer under reference is reproduced hereunder: "Reasons for reopening of the assessment in the case of Sh. Saket Agarwal for AY 2011-12 u/s. 147 of the Income Tax Act, 1961. The assessee is an individual and has income from busi....
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.... during the period when the prices of such scrips showed huge price variations. Profits before tax for AY 2010-11 and AY 2012-13 are as under: (in crores) March ending Amulya Leasing & Finance Ltd. (now Apollo Pipes Ltd.) 2010 2.19 2011 2.53 2012 0.52 This was in complete contrast to the large fluctuation in prices of shares of this scrip during FY 10-11. Such huge price variations are not supported by the financials of the company. This also suggests that prices of the scrip were rigged in order to allow beneficiaries to book bogus gains. During enquiries, it was also found that certain brokers and entry providers also made statements before the Directorate of Investigation, Kolkata and P....
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.... re-assessment has been made on altogether different grounds than what is recorded in the reasons for reopening the assessment. As per the reasons recorded, the allegation of escapement is with reference to income claimed as exempt under Section 10(38) of the Act to the extent of Rs. 10,02,865/- in relation to trading in the scrips namely, Amulya Leasing and Financing Ltd. However, a perusal of the re-assessment order shows that the additions have been made by invoking Section 68 of the Act for an amount of Rs. 3,13,227/- holding the same to be unexplained cash credit. Thus, the 'reason to believe' which in the first instance, impelled the Department to reopen the proceedings has undergone a complete change. 6. It is well settled that on....