TaxTMI 
TaxTMI 
2025 (4) TMI 997
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.... the present petition to the first prayer, which is reproduced 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 s....
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....ating to reassessment (Sections 147 to 151 of the Act) as were in force prior to 01.04.2021. It is material 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....
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....action that had resulted in long term capital gains. The Assessee explained that he had entered into a transaction for sale and purchase of ten thousand 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....
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....ed to have escaped assessment is less than Rs. 50,00,000/-. The relevant extract of the impugned order setting out the AO's reasoning for rejecting the Assessee's contention is set out below: "5.(ii) The 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 genuin....
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....red with the Assessee indicated the allegation that the Assessee had earned long term capital gains of a value of Rs. 61,95,000/-. Undisputedly, this information is not substantiated and there is no material to support the 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....
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....ion in respect of sale and purchase of shares of PMC Fincorp Ltd., as available on record, is represented by the contract note furnished by the Assessee which indicates STCG of Rs. 9,43,944/- and that is the only sum received by the 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 proceed....