TaxTMI 
TaxTMI 
2024 (11) TMI 316
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....loyed in the securities trading business. The assessee filed its return of income for the AY 2015-16 declaring total income of Rs. 27,80,140/-. The case of the assessee was selected for scrutiny u/s 143(3) of the Act, a notice u/s 143(2) of the Act was issued and served on the assessee by ITO, Ward-2(1), Patna. The learned AO after going over the documents filed by the assessee in support of the claim made by the assessee do not find satisfactory, as a result of which a sum of Rs. 40,34,780/- is disallowed u/s 14A of the Act read with Rule 8D of the Income Tax Rules, 1962. The ld. AO has further held that however, this sum is being restricted to the amount of exempt dividend income claimed i.e. Rs. 17,75,205/-. Accordingly, an assessment order was passed at the total income of Rs. 45,55,345/-. Demand notice was issued. The said order has been challenged by the assessee before the ld. CIT(A) wherein also the appeal of the assessee with regard to disallowance of Rs. 2,05,14,580/- has been dismissed but allowed the appeal of the assessee by allowing the credit for pre-assessment taxes paid and accordingly, the appeal has been dismissed. Being aggrieved and dissatisfied with the imp....
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....Ltd - 325 ITR 285 - 27.04.2010 j) Kolkata ITAT - Asit Kumar Patra vs ITO -ITA no. 2206/Kol/2019-21.02.2020 2.3. We have gone through the judgment passed by the Hon'ble Calcutta High Court in the case of Calcutta Club Ltd. (supra) which has been filed by the assessee and find that the Hon'ble High Court has dealt this issue which are reproduced herein below: "Before coming to the conclusion on the legal issues involved in the Writ Petition I would like to discuss the following provisions of law which are relevant for adjudication for the same: Section 149 (1) (b) of the I.T. Act 1961 prescribes the time limit for issue of notice. This section states that no notice under section 148 shall be issued for the relevant assessment year - (a) If four years have elapsed from the end of the relevant assessment year, unless the case falls under clause (b) [or clause (c)]. (b) Clause (b) states that, if four years, but not more than six years, have elapsed from the end of the relevant assessment year unless the income chargeable to tax which has escaped assessment amounts to or is likely to amount to one lakh rupees or more for that year.....
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....t sustainable in law and should be quashed for the reason that admittedly impugned proceeding initiated under Section 147 and notices issued under Section 148 of the Income Tax Act, 1961, which were issued after the expiry of four years from the end of the relevant assessment year and in view of the fact that there is no whispering in the recorded reason that there was any omission or failure on the part of the assessee in disclosing fully and truly material facts for assessment and in view of the fact that the Assessing Officer could not establish that the information of alleged escaped income was not within his knowledge and was not considered at the time of passing of the assessment order under Section 143 (3) of the Income Tax Act, 1961 and it came to his knowledge subsequent to the assessment order passed under Section 143 (3) of the Income Tax Act, 1961 and that subsequent decision of the Hon'ble Supreme Court reversing the legal position prevailing at the time of regular assessment cannot be called an omission or failure on the part of the assessee in disclosing fully and truly the material facts necessary for relevant assessment. In view of the discussion made ....
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....with regard to query made by the ld. AO is as follows: "6 (iii),(iv),(vi) and (vii) The Company has been carrying out inter related and/or inter dependent trading activities on the platform of recognised stock exchanges through SEBI Registered Stock Brokers for past many years with a simple strategy to earn decent amount of profit out of fund deployed in the securities trading business and therefore, intraday transactions, derivatives transactions, trading transactions and participations under various offers being inter related and inter dependent, should not be considered in isolation. Rather, all such transactions falls under one single reportable segment i.e. Income arising out of securities transactions carried out through recognized stock exchanges. We have already submitted item wise details of trading tractions, derivatives transactions and intra day transactions before your good self. Contract Notes shall be produced before your good seif during the course of the proceedings." 3.2. Keeping in view the above discussion, we are of this opinion that conditions precedent for reopening of the assessment beyond four years are not satisfied. There is no allegation of s....
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....rrectly transfer the return to the jurisdictional Assessing Officer and transfer the same to another Assessing Officer who has no jurisdiction as per the CBDT's notification, such mistake cannot confer the jurisdiction on such an Assessing Officer. Jurisdiction can be conferred only by notification issued u/ s 120(1) and 120(2) of the Act." 4.1. The ld. Counsel for the assessee has also filed a decision passed by the Hon'ble Bombay High Court in the case of PCIT v. Capstone Securities Analysis Pvt. Ltd. reported in (2023) 457 ITR 775 (Bom)(HC) and Hon'ble ITAT, Delhi Bench in the case of ACIT vs. U V Realtors Pvt. Ltd. in ITA No. 6033/DEL/2016 order dated 17.05.2021. 4.2. We have gone through the disposal of objection with regard to the jurisdiction passed by ITO, Ward-2(1), Patna that reflects that the issue of jurisdiction has been denied only on this ground that earlier jurisdiction lies with AO, Patna since issue of the PAN and as per the AO since no objection whatsoever has been raised by the earlier, hence, jurisdiction lies on the AO, Patna. We have gone through the order passed by the ITAT, Delhi Bench (supra) that has been decided with regard to jurisdict....