2024 (6) TMI 1143

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....Act") for the Assessment Year 2012-13. 2. The assessee has raised the following grounds of appeal:- "1. For that the orders passed by the lower authorities are arbitrary, erroneous, without proper reasons, invalid and bad-in-law, to the extent to which they are prejudicial to the interests of the appellant. 2. For that the Ld. CIT (A) erred in passing an ex-parte order on the ground of alleged non-compliance to the terms of the Notices issued u/s 250(1) of the Income Tax Act, 1961. 3. For that the Ld. CIT (A) erred in not providing sufficient and reasonable opportunity to the appellant and thereby passing an exparte order. 4. For that the Ld. CIT (A) erred in not properly serving the Notice fixing the ....

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....ment Year and the appellant having disclosed all material truly and fully necessary for assessment, re-assessment proceedings have been carried out without recording proper reasons to believe and, therefore, the reopening proceedings are bad in law, illegal and liable to be quashed. On the other hand, the ld. D/R stated that the assessee failed to appear before the ld. CIT(A) and, therefore, the matter needs to be restored back to the file of the ld. CIT(A) for necessary adjudication. 4. We have heard rival contentions and perused the material placed before us. We notice that the assessee is an individual earning income from salary and capital gain. Income of Rs. 1,03,32,160/- declared in the original return for Assessment Year 2012-1....

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....sment and which comes to his notice subsequently in the course assessment proceedings. Now, the first provision to Section 147 of the Act specifically deals with the case where assessment u/s 143(3) of the Act has already been carried out and it provides that no action shall be taken in the case after expiry of four years from the end of the relevant Assessment Year unless any income chargeable to tax has escaped assessment for such Assessment Year by reasons of failure on the part of the assessee to make a return u/s 139 of the Act or in response to a notice issued u/s 142(1) or 148 of the Act or to disclose truly and fully all material facts necessary for that Assessment Year. 5. Now, in the instant case assessment proceedings have bee....

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....ned short term capital gain of Rs. 57,46,787/- and has paid income tax thereon @ 15% which is applicable for such type of income u/s 112 of the Act. Further we notice that this short term capital gain has arisen by reducing the purchase cost of shares of VMS Industries at Rs. 2,27,038/- against the sale consideration of Rs. 90,81,515/-. It thus indicates that there is some information about the sale of VMS Industries Ltd. but the assessee has not claimed any exemption u/s 10(38) of the Act of Rs. 90,95,000/-. The records reveal that the assessee had already declared the transactions of purchase and sale of equity shares of VMS Industries Ltd., in its original return, it had earned short term capital gain of Rs. 57,46,787/- and duly offered ....