2024 (5) TMI 642

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....ough the notice u/s. 143(2) of the Act was not issued by the learned ITO. 2. The learned CIT(A) erred in confirming the addition of Rs. 1,45,00,000 being 100% sale consideration of the flat u/s. 69A though the assessee had declared capital gain on the sale of the said flat in the return of income and her ownership share in the said flat is only 50%. 3. Without prejudice, the learned CIT(A) erred in confirming the addition of Rs. 1,45,00,000 being 100% sale consideration of the flat u/s. 69A without giving deduction of cost of flat and expenses incurred in the financial year 2010-11 relevant to assessment year 2011-12. 2. Before us, the Ld. counsel for the assessee also filed an additional ground which is reproduced as under: 1. The a....

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....ons recorded were provided to the assessee only on 18.01.2019. The relevant part of the same is reproduced as under: "Subject: Reasons for Re-opening - reg. As required by you, the reason for re-opening of the assessment in your case for A. Y. 2012-13 is as per information received from DDIT(Inv.)-Unit-4(2),Mumbai that an enquiry was conducted in the penny scrip namely M/s. Nimbus Industries Limited (Script Code-530971) vis-à-vis providing Bogus Accommodation Entry in LTCG/STCL/Business Loss and beneficiaries involved are analysed by the DIT (Inv.)-Unit-4(2), Mumbai. On verification, it was found that you were one of the beneficiaries who has traded in the above mentioned scrip. SUNITA SUNIL Ward 33(2)(3), Mumbai" 3.1 In view ....

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.... the DDIT(Inv), Unit 4(2), Mumbai found that above named assessee is one of the beneficiary who had traded in the scrip namely M/S. Nimbus Industries Limited during F.Y. 2011-12 relevant to A.Y. 2012-13. The DDIT(Inv), Unit 4(2), Mumbai disseminated the data and forwarded the information of the above assessee to the office of undersigned. 3. As per the information received the assessee is one of the beneficiaries of such transactions classified as non genuine shares sale/purchase transactions. The assessee has made Total Sale of Rs. 5,69,501/- in the scrip M/s. Nimbus Industries Limited during the F.Y. 2011-12. 4. The investigation conducted by the Mumbai Investigation Directorate reveals that this company has been used by beneficiaries....

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....under consideration, hence necessary approval to initiate proceedings u/s 147 of the I.T. Act and to issue notice u/s 148 of the I.T. Act may be accorded as per the provisions of section 151 of the Income tax Act." 3.2 In view of above two sets of the reasons recorded available before us, the Ld. DR was asked to substantiate as whether the second set of the reasons made available on assessment folder and produced before us during the hearing, was served upon the assessee or not. The Ld. DR referred to the service of letter dated 31.03.2019 available on page No. 2/3 of her submission, but which is found to be in respect of notice u/s 148 of the Act. Therefore, it is clear that said reasons were never provided to the assessee and authenticit....