2022 (4) TMI 1616

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....tioner thereafter received a notice dated 12th November, 2015 under Section 142(1) of the Act, calling upon Petitioner to produce the accounts and documents mentioned therein. One item which is relevant to the Petition at hand is at serial No.6 in the said notice and it reads, "During the year you have declared capital gain on sale of shares and claimed the same as exempt. Please furnish the following statement with proof of payment of STT". By a letter dated 28th December, 2015, Petitioner filed a response to the notice and provided details of long term capital gain on sales of shares claimed as exempt (enclosed as Annexure-5) and attached contract notes showing payment of STT. In these documents to which Mr. Thakkar took us through, Petit....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....admitted that the Company was a paper company. Investigation revealed that Petitioner had sold shares of Finalysis worth Rs. 29,37,208/- during the relevant assessment year and therefore, assessment of the said transactions has escaped assessment. As per the reasons, admittedly Petitioner has disclosed during the assessment proceedings and it is seen that Petitioner has claimed long term capital gain at 10% of Rs. 29,37,208/-. Thus, information received by the DDIT (Inv)-8(1) has live link with the financials of Petitioner. We have to emphasize that in the reasons itself Respondents admit that Petitioner has disclosed during the assessment proceedings that Petitioner had traded in Finalysis. 3. This is a case where the proposed re-openin....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ent No. 1 got information that Finalysis was a paper company or a penny stock company based on certain investigations. Mr. Suresh Kumar submitted that it came to light during the investigation that Petitioner also had traded in the scrip of Finalysis during A.Y. 2013-2014 and therefore, Respondent was entitled to re-open. Mr. Suresh Kumar submitted that revenue has to go to the root of the matter and take action against those involved in this price rigging and assess people claiming non genuine transactions in its books. We have to note that there is no allegation at all in the reasons recorded for re-opening or in the Affidavit in Reply that investigations have revealed that Petitioner was the master mind or actively involved in rigging of....