2024 (5) TMI 105

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....n individual, received a notice dated 14th June 2021 issued under Section 148 of the Income Tax Act, 1961 ("the Act") alleging escapement of income for Assessment Year ("AY") 2016-17 and that Petitioner has indulged in sale and purchase of shares of Penny Stock Company/shell companies and calling upon to show cause why a sum of Rs. 17,17,370/- be not assessed to tax in the hands of Petitioner. Admittedly, Petitioner was a non-filer of return of income ("ROI"). Paragraphs 8 & 11 of the original order under Section 148A(d) of the Act passed on 29th July 2022 read as under: "8. The submission of the assessee was carefully perused and considered but found not acceptable. In her submission, the assessee has stated that she has sold the ....

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....ng the shares for more than 12 months is required only for LTCG purpose. 11. In view of the above facts, it is found that the assessee has made transactions in the shares of the above companies and the assessee has failed to furnish the source of investment in shares amounting to Rs. 14,47,767/- and also failed to offer STCG amounting to Rs. 2,69,603/- as claimed by the assessee. Considering the above facts and discussion, it is clear that there is information with this office which suggests that the income chargeable to tax amounting to Rs. 17,17,370/- has escaped assessment for the F.Y. 2015-16 relevant to A.Υ. 2016-17." Simultaneously, a notice under Section 148 of the Act was also issued and an assessment order dated....

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.... for AY 2016-17 under Section 148A(d) of the Act came to be passed. In this order, paragraph 2 reads as under: "2. As per the information which was shared with the department it was revealed that the assessee has carried out the following transaction as given below during the given financial year. Sr. No. Gist of Information Amount (in Rs.) 1 Purchase of Shares by related PAN of penny stock of EML & GBFL Ltd. 14,47,771/- 2 Sale of Shares by related PAN of penny stock of EML & GBFL Ltd. 17,17,372/- 3 Others (Fictitious LTCG benefit by manipulation in penny stock) of Mangalam Industrial Finance Ltd. 38,93,386/- Total 70,58,529/- 5. The Insight portal, which is relied upon as an enclosure t....

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....this Court in Siemens Financial Services Private Limited Vs. Deputy Commissioner of Income Tax & Ors. (2023) 457 ITR 647 (BOM), as the first reopening notice dated 27th May 2022 itself was barred by limitation. Mr. Ashok Kumar Gupta could take this point in the appeal, i.e., lodged by Petitioner. 6. In view of what is noted above about the absence of information in the notice issued under Section 148A(b) of the Act with regard to the first two items mentioned in the order under Section 148A(d) of the Act and the fact that assessment orders have already been passed with regard to those two items and item 2 includes item 1 mentioned above, also clearly indicates total nonapplication of mind by the Assessing Officer ("AO") as also by the Pr....