TaxTMI 
TaxTMI 
2024 (10) TMI 857
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.... in confirming the addition made by the Assessing Officer on account of disallowance of loss of Rs. 2,47,48,393/- incurred by the assessee in commodities dealing in National Multi Commodity Exchange of India Limited ('NMCE') platform and further making addition of Rs. 4,92,263/- u/s 69C of the Act on account of alleged commission that might have been paid by the assessee in booking the aforesaid bogus loss in commodity trading. 3. The assessee in this appeal has contested the aforesaid additions not only on the legal ground relating to the validity of the reopening of the assessment u/s 147 of the Act but also on merits. 4. At the outset, the ld. counsel for the assessee has brought our attention to the copy of the reasons recorded for re....
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.... respect of the third reason that the assessee had incurred huge bogus commodity loss is concerned, the ld. AR of the assessee has brought our attention to the reasons recorded by the Assessing Officer to submit that the only reason mentioned by the Assessing Officer in this respect in the reasons recorded is in the last lines of the said letter which reads as under: "Apart from the above information has been received from credible source that the assessee has booked loss/profit by misusing the platform of NMCE (National Multi Commodity Exchange) during the financial year 2010-11." 4.2 The ld. counsel in this respect has submitted that the aforesaid reason mentioned by the Assessing Officer was a vague reason and would not fall within th....
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....Mines and Minerals (P.) Ltd -vs- ACIT - [2024] 163 taxmann. com 37 (Bombay) 6. Reynolds Shirting Ltd -vs- ACIT - 135 taxmann.com 78 (Bombay) / [2022] 285 Taxman 554 (Bombay) 7. PCIT -vs- Eastern Coalfields Ltd. - ITAT/98/2018, judgment dated 04.01.2022 (Cal HC) 8. PCIT -vs- Sambuddha Tracon Pvt. Ltd. - ITAT/90/2022, judgment dated 15.11.2022 (Cal HC) 9 Champalal Omprakash -vs- ITO [2024] 159 taxmann.com 1397 (Kolkata - Trib.) 10. PKC Securities -vs- ITO - ITA No.2399/Kol/2019, judgment dated 10.02.2021 (Kol ITAT) 11. Gopal Prasad Agarwal -vs- ITO - ITA No.1771/Kol/2019, judgment dated 17.01.2020 (Kol ITAT) 12. Proficient Commodities Pvt. Ltd -vs- DCIT - ITA Nos.2307 & 2308/Kol/2017, judgment dated 02.11.2018 (Kol ITAT) 13. A....
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....ble on the basis of borrowed satisfaction of the Assessing Officer. The powers of Assessing Officer to reopen an assessment, though wide, are not plenary. The words of the statute are "reason to believe" and not "reason to suspect". Such an action of the Assessing Officer regarding formation of belief of escapement of assessment and thereby in starting proceedings u/s 147 is open to challenge in a court of law. The entire law as to what would constitute "reason to believe" has been summed up by the hon'ble Supreme Court in the case of "Income Tax Officer v Lakhmani Mewaldas" (1976) 103 ITR 437. Reliance in this respect can also be placed on the decision of the Hon'ble Punjab & Haryana High Court in the case of 'CIT vs Paramjit Kaur&....
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....sessing Officer cannot be said to be the reasons "to form the belief" that income of the assessee had escaped assessment. The Hon'ble Delhi High Court in the case of PCIT -vs- Meenakshi Overseas (P.) Ltd. (supra) has held that where reassessment was resorted to on basis of information from DIT(Investigation) that assessee had received accommodation entry but and there was no independent application of mind by Assessing Officer to tangible material and reasons failed to demonstrate link between tangible material and formation of reason to believe that income had escaped assessment, reassessment was not justified. Similarly, the Hon'ble Delhi High Court in the case of PCIT - Vs- G & G Pharma India Ltd. (supra) has held that where the Assessin....