TaxTMI 
TaxTMI 
2025 (4) TMI 997
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....d below: "(I) Issue a writ in the nature of mandamus/ certiorari or any other appropriate writ, order or direction for quashing: (a) the notice dated 08.04.2021 issued under section 148, as it existed prior to substitution vide Finance Act, 2021 w.e.f. 01.04.2021, and now deemed to be notice under section 148A (b) of the Income Tax Act, 1961 ('the Act'); (b) the letter/ notice dated 20.05.2022 issued by Respondent No. 1 communicating the so-called information/ material forming the basis of proceedings under section 148/148A of the Act; (c) the order dated 22.07.2022 passed by Respondent No. 1 [with the prior approval of Respondent No. 2] under section 148A (d), and the consequent initiation of reassessment proceedings vide notice da....
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....erial to note that several petitions were filed challenging such notices, which were issued after 31.03.2021 without following the procedure under Section 148A of the Act which were introduced with effect from 01.04.2021. A batch of such petitions was allowed by this court in - Mon Mohan Kohli v. Assistant Commissioner of Income Tax & Anr.: (2024) ITR 207 (Del.) and other connected matters. Several other High Courts had also set aside such notices and several petitions challenging similar notices were pending in various courts across the country. 5. The Revenue had preferred an appeal before the Supreme Court against orders setting aside such notices. In Union of India & Ors. v. Ashish Agarwal: (2023) 1 SCC 617, the Supreme Court considere....
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....sand number of equity shares of PMC Fincorp Limited, which had resulted in STCG (short term capital gains). The same were purchased on 20.03.2014 at the rate of Rs. 523.65 and were sold on 26.03.2014 at the rate of Rs. 619.38. The same had resulted in short term capital gains of Rs. 9,57,220/-. The Assessee had also paid security transaction tax and other charges amounting to Rs. 13,276/- and therefore had made a net gain of Rs. 9,43,944/-. The tabular statement set out in the reply indicating the details of the sale and purchase transaction entered into by the Assessee is set out below: Name of the Scrip Qty Date of Purchase Rate Amount Date of Sale Rate Amount Short Term Capital Gain PMC Fincorp 10000 20.03.2014 523.65 52365....
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....e assessee has produced complete copy of ITR, bank statement, statement of broker account, scrip wise report and contract notes. On perusal of the same it is observed that during the year under consideration assessee has purchased 10,000 quantity shares of PMC Fincorp on 20.03.2014 amounting to Rs. 52,36,580/- and sold out the same of Rs. 61,93,800/- and thus gain short term capital gain of Rs. 9,43,944/- (after deduct STT/other charges). The reply of the assessee is not tenable as the transaction of share does not found to be genuine because for doing the transaction the person has to keep margin money with the share broker which is not reflecting in the documents submitted by the assessee along with his reply. In this case the contract no....
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.... same. The Assessee has not claimed any long term capital gains, which are exempt from tax. Since it is established that the Assessee had not declared any Long Term Capital gains, the question of any income escaping on that account does not arise. 13. The Assessee has produced a copy of his return which establish beyond any pale of doubt that the Assessee had not made any claim on account of long term capital gains in respect of a transaction of sale and purchase of shares of PMC Fincorp Ltd. There is also no cavil that the Assessee had claimed that he had earned short term capital gains amounting to Rs. 9,43,944/- on which tax amounting to Rs. 1,20,337/- was paid. 14. The AO had observed that the transaction of sale and purchase of the s....
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....he Assessee. The said material on record cannot by any stretch lead to the conclusion that the income above Rs. 50,00,000/- has escaped assessment during the relevant assessment year. 16. It is contended by Mr Gupta, the learned counsel appearing for the Revenue that the value of information as set out must be accepted for the purpose of determining the period of limitation under Section 149 (1) of the Act. This contention is without merit and is contrary to the scheme of the provisions for initiation of proceedings for assessment/reassessment of income that has escaped assessment under Section 147 of the Act. It militates against procedure prescribed under Section 148A of the Act. The purpose for sharing the information, which is construe....