TaxTMI 
TaxTMI 
2025 (6) TMI 305
X X X X Extracts X X X X
X X X X Extracts X X X X
....4B of IT Act in absence of condition precedent for the assumption of jurisdiction, the order passed by A.O is bad in law, void ab initio and liable to be quashed on account of following defects:- i. That the reasons to believe was formed merely on basis of report of investigation wing without conducting any independent enquiry thus failing to form his own formation of believe. ii. That reasons to believe was based on wrong facts that the transaction of sale of share was not disclosed in ROI but in fact the appellant had very well shown long term capital gain on sale of shares and claimed the same to be exempt u/s.10(38) of IT Act. iii. That in reasons no tangible material is narrated or described so as to form valid believe u/s.148 of....
X X X X Extracts X X X X
X X X X Extracts X X X X
....l which reads as under: "1. "Without prejudice to the grounds taken in Form no. 36, in the facts and in law, assessment order passed u/s. 143(3) rws 147 rws 144B dt. 08/09/2021 by Learned Assessing Officer, NFAC is illegal and bad in law void-ab-initio and liable to be quashed as the reason to believe was formed merely on basis of report of investigation wing without conducting any independent enquiry thus failing to form his own formation of believe and was based on wrong facts that the transaction of sale of share was not disclosed in ROI but in fact the appellant had disclosed the same as long term capital gain on sale of shares and claimed to be exempt u/s 10(38) of IT Act. Furthermore the Appellant had raised her objection before the....
X X X X Extracts X X X X
X X X X Extracts X X X X
....recorded by the A.O it is invalid and without satisfaction to invoke proceedings u/s. 147/148 of the Act. The reasons recorded by the A.O has been annexed at Page 19 & 20 of the paper book. For the sake of clarity, the same are extracted as follows: Reason for issuing notice under section 148 of the I T Act, 1961 1. Brief details of the Assessee : The assessee is an individual. The assessee derives income from business, house property and other sources. Return of Income is filed by the assessee on 21.03.2015 thereby declaring income at Rs. 2,67,310/-. 2. Reasons for reopening the case of the Assessee: On verification, of the credible information available on record, it is noticed that the assessee has sold shares of M/s Tilak Vent....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... has shown LTCG from transactions on which securities transaction taxes has been paid and the taxes thereon mentioned is Rs. 8,84,938/-. That further, in the computation of income at Page 115 of the paper book in column "details of exempt income", the assessee has also mentioned capital gain ( STT) as per annexure u/s. 10(38) of the Act, wherein the amount is also matching at Rs. 8,84,938/-. 6. Per contra, the Ld. Sr. DR has produced a report of the A.O wherein the A.O has mentioned that the assessee has not disclosed in the return of income the amount of Rs. 9,27,878/- which is the amount received by the assessee from M/s. Tilak Venture Ltd. and therefore, as per the contention of the Ld. Sr. DR, the "reasons to believe" are well founded ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ssee that in the return of income filed in Column "exempt income", the assessee has shown LTCG transaction on which securities transaction taxes has been paid of Rs. 8,84,938/-. Similarly, in the computation of income also in column "details exempt income", it has been shown the capital gain (STT) a/w. annexure u/s. 10(38) of the Act totaling Rs. 8,84,938/- which matches with the amount shown in the return of income. In this regard, the observation of the A.O is incorrect, arbitrary and perverse. The mandate of law is that while invoking reassessment proceedings, the A.O should be absolutely clear in his mind that there are "reasons to believe" that the income or part of income of the assessee has escaped assessment. In this case, the A.O h....