AI Drafter 
TaxTMI 
TaxTMI 
2024 (10) TMI 247
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.... present case, the assessment under section 147 r.w.s. 144 B of the Income Tax Act was completed their by making additions under section 69A of the Act on account of sale proceeds of the shares. 2.2 Although assessee preferred appeal before ld CIT(A) but the same was dismissed after considering the arguments of the parties and also evaluating the facts. 2.3 Aggrieved by the order of Ld CIT(A), the assessee has now preferred the present appeal for me on the grounds mentioned here in above. 2.4 Ground No. 1 raised by assessee relates to challenging the order of Id CIT (A) in conforming to the validity of notice issued under section 148 of the Act and consequent order passed under section 147 of the Act. 2.5 Ld AR appearing on behalf of assessee reiterated the same arguments as were raised by him before the revenue authorities and also relied upon his written submission. ''It is submitted that the AO in the reasons recorded has observed that SEBI has passed some order on the issue of manipulation of share market for providing accommodation entry of bogus LTCG. SEBI considering the inputs from the income tax department as well as its own surveillance system and tha....
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....her document, whether as a letter or report, such document and/ or relevant portions of such report should be enclosed along with the reasons. Deepraj Hospital Pvt. Ltd. Vs. ITO (2018) 65 ITR 663 (Agra) (Trib.) If the reopening is based on information received from the investigation dept., the reasons must show that the AO independently applied his mind to the information and formed his own opinion. The AO in the reasons has just stated the information received and his conclusion about the alleged escapement of income. As to what the AO did with the information made available to him is not discernible from the reasons. The reasons must also paraphrase any investigation report which may form the basis of the reasons and any enquiry conducted by the AO thereon as also the conclusions thereof. Further where the reasons make a reference to any document, such document and / or relevant portion thereof must be enclosed along with the reasons. Therefore, reasons recorded by the AO are found to be not in accordance with law. Consequently, the reassessment proceedings, culminating in the order under appeal, are also not sustainable in the eye of law and they too are cancel....
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....ssee had taken accommodation entries of bogus purchase bills from 'GJ', since AO had not recorded his own satisfaction and had not made any effort to examine and to discuss material received from Investigation wing, reassessment so made was to be quashed. Pioneer Town Planners Pvt. Ltd. Vs. DCIT (2018) 170 DTR 237 (Del.) (Trib.) AO having formed the belief that assessee's income has escaped assessment only on the basis of some material received from the Investigation Wing without making any effort to examine and discuss the material received from the Investigation Wing and without application of the mind to the same, it follows that he initiated the reassessment proceedings on the basis of borrowed satisfaction without application of his own mind and therefore, reassessment proceedings and all consequent proceedings and orders including impugned reassessment are bad in law and not sustainable. Smt. Sunita Jain Vs. ITO (2017) 49 CCH 0330 (Ahd.) (Trib.) The Hon'ble ITAT after relying on the decision of Gujarat High Court in case of Harikishan Sunderlal Virmani Vs. DCIT, quashed the assessment framed u/s 147. The Hon'ble High Court in its case held ....
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....td. listed in Bombay Stock Exchange provide entries of tax exempt long term capital gain to the beneficiaries and assessee is one of such person who has availed accommodation entries of bogus capital gain issued notice u/s 148 dt. 18.03.2020 by recording the reasons which is placed at PB 24-27. The assessee filed objection against reopening of the assessment (PB 28- 31). The AO, however, observed that assessee has not disclosed the long term capital gain/ said transaction either in her original return of income filed on 15.02.2014 or in the return of income filed in response to notice u/s 148 on 23.03.2021 though the said transaction were reflecting in the bank statement. Further the scrip which generated LTCG is a penny stock company and a scheme for converting black money into white as independently confirmed by SEBI. The notice u/s 148 was issued after verification of details filed by the assessee in the ITR. The sufficiency of reasons is not to be considered while issuing notice u/s 148 and thus the objection raised by the assessee were rejected. Now what I have observed is that on the basis of information collected during search and survey operations, assessee is identified as....