2024 (2) TMI 1343

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....lenging a notice dated 21st February 2022 issued under Section 142(1) of the Act. 2. A return of income for AY 2013-14 was filed by Petitioner on 27th September 2013 declaring total income of Rs. 31,19,01,830/-. Subsequently, Petitioner filed revised return on 30th March 2013 declaring total income at Rs. 31,19,01,830/-. Petitioner's case was selected under Computer Assisted Scrutiny Scheme ("CASS"), notices were issued under Section 142(1) of the Act, replies were received and finally an assessment order under Section 143(3) of the Act came to be passed on 29th February 2016. Subsequently, Petitioner received a notice dated 30th March 2021 under Section 148 of the Act alleging that there were reasons to believe income has escaped assess....

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..... 31,57,60,743/- on account of delivery based purchase and sale of shares. This loss was established to be speculation loss and amount of Rs. 31,57,60,743/- was added to the income of the assessee during regular assessment. Similarly an amount of Rs. 14,26,49,861/- as STT relatable to delivery based share transaction was also added back at the time of regular assessment. Scrutiny of the P&L revealed that the assessee had also debited various expenses including employee benefit expenses, financial costs, direct expenses and other administrative expenses. Proportionate disallowance of these expenses is needed to be made." 3. Since an assessment under Section 143(3) of the Act has been done for the relevant assessment year and over....

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....rm or long term gain etc with statement. Kindly state properly how the treatment of loss/income has been given in the computation of income. Kindly explain why your claim of Trading Loss and Speculation Loss should be allowed. Provide proper and complete details for allowing your claim. Explain why delivery based share transactions be not treated as speculative loss and set off with F&O income should be allowed to you as per explanation to Sec 73 of the Act. For "Brokerage Income", provide name, address, PAN, amount, related party, % of brokerage, period, O/s as on 31-Mar-2012. For "Brokerage Income", provide MOU/Contract/ Agreement. With related party transactions provide details and data to determine Arms Length Price for t....

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.... raised during the assessment proceedings and Assessee has replied to it, it follows that the query raised was a subject of consideration of the AO while completing the assessment. It is not necessary that an assessment order should contain reference and/or discussion to disclose its satisfaction in respect of the query raised. The Court held that only requirement is that AO ought to have considered the objections now raised in the grounds for issuing notice under Section 148 of the Act during the original assessment proceedings. If that has been done, it would follow that the reopening of assessment by impugned notice will merely be on the basis of change of opinion of the AO from that held earlier during the course of assessment proceedin....