2024 (3) TMI 885

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..... The petitioner received a notice dated 29.03.2021 under Section 148 of the Income Tax Act. Thereafter, a notice under Section 142(1) was issued to the petitioner stating that he had transferred 5000 shares of M/s.Info-Drive Analytics Pvt. Ltd(Info-Drive India) to M/s.Info-drive Analytics (Mauritius) Pvt. Ltd(Info-drive Mauritius), during the financial year 2015-2016 for a total consideration of Rs. 12,50,000/-. He was called upon to provide an explanation with regard to the said transaction. By reply dated 23.08.2021, the petitioner raised objections on the ground that the procedure specified under Section 127 was not followed, but filed the return of income in response there to. This was followed by further notices under Section 142(1) o....

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....VN Seshagiri Rao on 12.02.2015, which falls within the financial year 2014-15 and not 2015-2016. He also points out that the consideration received was Rs. 11,50,000/- and not Rs. 12,50,000/-. In these facts and circumstances, learned counsel submits that the impugned draft assessment order is liable to be set aside and the matter remanded for re-consideration from the stage of issuing a speaking order based on the objections of the petitioner. 5. Mr.D.Prabhu Mukunth Arun Kumar, learned junior standing counsel counters these submissions. As regards the applicability of the dictum in GKN Driveshafts (cited supra), he submits that the Court refused to interfere with the notice under Section 148 in that case. By referring to paragraph no.3 ....

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.... indicate that 5000 shares were transferred by the petitioner to Mr.V.N.Sesharigi Rao and those shares were eventually acquired by Infodrive Mauritius. Since this transaction was not disclosed by the petitioner in his return of income, it is possible that the capital gains arising therefrom escaped assessment. Thus, there is some basis for re-opening the assessment. 8. However, the petitioner has placed additional documents on record. These documents appear to indicate that the petitioner transferred the shares to Mr.V.N.Sesharigi Rao on 12.02.2015. If the said documents are found to be valid and genuine on verification, they indicate that the share transfer took place during the financial year 2014-15 and not 2015-16. This would have a ....