TaxTMI 
TaxTMI 
2024 (10) TMI 95
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.... Counsel Mr.Varun K.Patel waives service of notice of rule on behalf of respondent no.1. 3. By this petition under Article 226 of the Constitution of India the petitioner has prayed for the following reliefs: "(a) to issue a writ of certiorari or in the nature of certiorari or any other appropriate writ, orders or directions quashing and setting aside the impugned notice dated 30-03-2021 [Annex.-A] issued by the Respondent proposing to reopen the completed assessment of the Petitioner for A.Y. 2017-18 as well as the order of objection dt. 10.11.2021 (Annex.-B) as well as the reassessment order, if any passed in consequence to the impugned notice. (b) to call for the records of the proceedings, look into them and be plea....
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....er including the Short Term Capital Gains and Long Term Capital Gains transactions and assessed the income and determined the total income by making addition under Section 14(A) of the Act of Rs.3,54,514/- for Rs.55,63,304/-. The Assessing Officer however determined the books profit as per Section 115JB of the Act at Rs.2,04,69,726/- and adding disallowance of Rs.3,54,514/- assessed Book profit at Rs.2,08,24,240/-. 4.4. The respondent-Assessing Officer thereafter issued impugned notice under Section 148 of the Act for Assessment Year 2017-18 on 30.03.2021 proposing to reassess the total income on the ground that share price of Kushal Ltd. were rigged without supportive financials and fundamentals to provide bogus accommodation entr....
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....beneficiaries of bogus Capital Gain in Kushal Scrip. Such evidences are discussed in detail in below paras. As evident from the above files in photographs; There is clear noting of the cash transactions by Kushal group against providing bogus LTCG benefits to beneficiaries. Rate of commission i.e.ltg charges and the amount received by Kushal group are clearly noted in these sheets. Detailed investment plan of the beneficiaries, details of their exit, price at which beneficiaries have to exit etc are also systemically recorded in these sheets. Such record contains clear plan of taking undue benefits of bogus LTCG provisions of the Act to willfully evade tax. Cash sharing ratio i.e. 30%, 50% etc is....
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....me is required to be brought to tax. Hence, I have reasons to believe that there is an escapement of income from tax of Rs.67,56,951/- and it is a fit case for issuing notice u/s. 148 of the Act." 4.6. The petitioner on receipt of the above reasons recorded for reopening, filed objections on 15.07.2021 which were rejected by the respondent-Assessing Officer vide order dated 10.11.2021. Being aggrieved, the petitioner has preferred this petition. 5. Learned advocate Mr.S.N.Divatia has tendered draft amendment. The same is allowed in terms of draft. To be carried out forthwith. 5.1. It was submitted that the respondent- Assessing Officer has recorded the reasons for reopening only on the basis of the borrowed sat....
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....rded once the entire assessment is reopened, the Assessing Officer can look into other aspects of the assessment and therefore it cannot be said that the reopening exercise would be futile exercise. It was further submitted that the Assessing Officer on the basis of the information received has recorded the reasons for reopening which have come into the possession after framing of the assessment under Section 143(3) of the Act. It was further submitted that as the reopening is done within a period of four years proviso to Section 147 of the Act would not be applicable and as the new information has come into the possession of the Assessing Officer with regard to the transaction of Kushal Ltd. which are found to be involving in to providing ....