Supreme Court dismisses delayed petition challenging quashed section 147 reassessment proceedings for non-genuine trading gainsThe SC dismissed a special leave petition challenging the HC's decision to quash reassessment proceedings under section 147. The assessee had allegedly generated non-genuine gains through trading in Kusha Script on BSE. The HC found that the AO's reasons for reopening assessment lacked sufficient information beyond the general allegation. Crucially, even if the proposed addition were made, the income taxable under section 115JB would remain unchanged, rendering the reassessment proceedings futile. The SC upheld this finding but dismissed the petition solely on grounds of delay, noting 196 days' delay in filing without justifiable cause for condonation. The reassessment proceedings were effectively quashed as they would serve no fruitful purpose.

The Supreme Court, in a partial Court Working Days Bench comprising Hon'ble Justices Pamidighantam Sri Narasimha and R. Mahadevan, dismissed the special leave petition due to an inordinate delay of 196 days. The Court held that "there are no justifiable grounds for condoning the delay," thereby refusing to exercise its discretionary jurisdiction.

Reopening of assessment u/s 147 - merely because the income u/s 115JB is more than that of the proposed addition qua the income escaping the assessment - delayed filling of SLP As decided by HC[2024 (10) TMI 95 - GUJRAT HIGH COURT] assessee had indulged in generating non-genuine gain by trading in Kusha Script on BSE during the year under consideration, except such information, no other information relating to the assessee or in connection with the transaction carried out by the assessee was recorded in the reasons by the AO. As apparent that the even if the addition is made as proposed by the AO in the reasons recorded, being the income escaped from the assessment, as the income which is taxed u/s 115JB is concerned, there would not be any taxable income after proposed addition. Petition succeeds as no fruitful purpose would be served to continue the re-assessment proceedings. HELD THAT:- There are no justifiable grounds for condoning the delay of 196 days. The special leave petition is dismissed on the ground of delay. ASST. COMMISSIONER OF INCOME TAX CIRCLE 1 (1) (1) OR HIS SUCCESSOR Versus ADESHWARA CEMENT CO. PVT. LTD.
Income Tax
2025 (7) TMI 1125 - SC Order - TMIU
SUPREME COURT - SC
Dated:- 3-7-2025
SPECIAL LEAVE PETITION (CIVIL) DIARY NO(S). 27158/2025 - -
Income Tax
HON'BLE MR. JUSTICE PAMIDIGHANTAM SRI NARASIMHA And HON'BLE MR. JUSTICE R. MAHADEVAN (PARTIAL COURT WORKING DAYS BENCH) For the Petitioner : Mr. Rupesh Kumar, Sr. Adv. Mr. Raj Bahadur Yadav, AOR Mrs. Madhulika Upadhyay, Adv. Mr. Bhuvan Kapoor, Adv. Mr. Ishaan Sharma, Adv. Mr. Padmesh Mishra, Adv. Mr. Mukesh K Verma, Adv. Mr. S Dwarakanath, A.S.G. ORDER UPON hearing the counsel the Court made the following. There are no justifiable grounds for condoning the delay of 196 days. The special leave petition is dismissed on the ground of delay.
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