2025 (5) TMI 875

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.... based on the information available in insight portal, the case of the assessee was reopened on the allegation that the assessee has obtained bogus fictitious loss by trading in shares of penny stock company namely M/s Stampede Capital Ltd. of Rs. 44,12,308/-. Thereafter in the order passed u/s 143(3)/ 147 of the Act, loss claimed from the trading of shares in M/s Stampede Capital Ltd. of Rs. 44,12,308/- was added as 'Income from Other Sources' in the hands of assessee by invoking the provisions of section 68 of the Act. The AO also holds the company M/s Stampede Capital Ltd. as a penny script. Against this order, the assessee preferred an appeal before the Ld. CIT(A) who dismissed the appeal of the assessee, thus, the assessee is in appeal before the Tribunal by taking following grounds: "1. The Ld. CIT(A) has erred both in law and on facts in confirming loss of the appellant firm at Rs. 96,86,180/- as against the returned loss of Rs. 1,43,63,227/- in the order of assessment dated 24.03.2022 under section 147 of the Income Tax Act, 1961. 2. The Ld. CIT(A) has erred on facts and law in disregarding the material on record and not appreciating that the Appellant and....

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....as copies of ledger accounts of purchase and sales of scrips having full details of shares traded alongwith the contract notes issued by the broker which are available in paper book pages 46 to 58. The AO after considering them, had accepted the loss declared by the assessee without raising any doubts about any transaction carried out by the assessee. Thereafter, without showing as to how and in what manner the assessee failed to disclose truly and fully all martial facts, the completed assessment has reopened, thus the basic requirements of section 147 are not fulfilled. To confirm these facts, an affidavit of the Director of the assessee company is filed before us which read as under: 5. The Ld. AR placed reliance on the judgment of Hon'ble Bombay High Court in the case of Infinity.com Financial Securities vs. ACIT, wherein it is held that reopening of assessment cannot be sustained when the issue has already been examined during the scrutiny. He further placed reliance on the Hon'ble Jurisdictional High Court in the case of Sashi Mohan Garg vs. ITO reported in 157 Taxmann.com 549 (Del.) wherein the Hon'ble High Court has held that the reassessment proceedings were triggered a....

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....eneficiaries were reproduced which do not contain the name of the assessee and in the last, the Assessing Officer based on which such enquiry had held on company M/s Stampede Capital Pvt. Ltd is penny stock company and disallowed the loss claimed by the assessee. It is relevant to state that all such information mainly related to AY 2015-16. From the paper book filed by the assessee, it is seen that during the assessment proceedings, the assessee has filed all the details with respect to the purchase and sale of the shares and filed the broker contract notes in the reply given to the Assessing Officer which are available in the PB 55 to 58 of the PB. The Assessing Officer while completing the assessment u/s 143(3) has applied his making and allowed the loss after making verification all these facts, therefore, it cannot be said that assessee has not truly and fully disclosed of material facts necessary for the assessment before us Assessing Officer more particularly when the case of the assessee is reopened after the expiry of the four years from the end of the relevant assessment years. 8. The Hon'ble Delhi High Court in the case of the Harsh Vardhan Bansal vs. ACIT reported in....

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....espondent, after considering such information/material received from other sources, consider the same with the material on record in the case of the petitioner assessee and thereafter, is required to form independent opinion that income has escaped assessment. Without forming such opinion solely and mechanically relying upon the information received from the other sources, the respondent-Assessing Officer could not have assumed the jurisdiction to reopen the assessment based on such information. This Court in case of Raajratna Stockholdings (P.) Ltd. v. Asstt. CIT [2025] 170 taxmann.com 473 (Gujarat)/(judgment dated 25.11.2024 rendered in Special Civil Application No.3696 of 2022) in similar circumstances has quashed and set aside the impugned notice issued under section 148 of the Act and consequential order disposing off the objections raised by the petitioner." 10. In view of the facts and by respectfully following the judgment of the various High Courts and Co-ordinate Benches of ITAT, we are of the considered view that in the instant case, the AO has simply proceeded on the basis of the information available in insight portal, without brining on record any fresh material, t....

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....f this Stamp certificate should be verified al www.the website / Mobile App renders it invalid. Any discrepancy in the details on this Certifica this Certificate and as available on the website / Mobile 2. The onus of checking the legitimacy is on the users of the certificate. mmm of ans diepronaner please inform the Competent Authority. E-Stamp Certificate No .- IN-DL52863680827694X AFFIDAVIT I, AJAY KHANNA, son of Late Shri Banwari Lal Khanna, aged about 68 years resident of A-9, Ring Road, Naraina Vihar, New Delhi-110028, do hereby solemnly affirm and state as under: 1. That I am the Director/authorized signatory of the Appellant and in that capacity, I am fully conversant with the facts and circumstances of the present case and competent to depose by way of this affidavit. 2. That the documents placed on record before the Assessing Officer in the reassessment proceedings, forming the subject matter of the present Appeal, as regards the sale and purchase of scrips, were also part of the original assessment record, wherein the Department had accepted the Appellant's return of income. 3. That the sale and purchase ledger signifying trading in M/s. Stampede Capita....