TaxTMI 
TaxTMI 
2025 (8) TMI 383
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.... the Income Tax Act,1961 [for short 'the Act']. 4. The petitioner-company was engaged in the activity of trading in shares and securities. During the Financial Year 2012-13 relevant to Assessment Year 2013- 14, the petitioner had also entered into transaction in Futures & Options [F & O] and derivatives, which resulted into profit of Rs. 1,52,59,143/-. The petitioner disclosed the same in the Profit and Loss Account and filed return of income for the year under consideration on 30.09.2013 declaring total income at Rs. (-)73,71,104/-. Case of the petitioner was selected for scrutiny and during original assessment proceedings, various details were called for which were duly furnished from time-to-time by the petitioner and the assessment order under section 143(3) of the Act was passed on 17.02.2016 accepting the returned income. 4.1 The respondent thereafter issued the impugned notice for reopening of the assessment on the information received on the insight portal in March 2021 regarding coordinated and premediated trading on the Bombay Stock Exchange by engaging in reversal trade and illiquid stock options resulting in non-genuine business loss/gain to the beneficiary assess....
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....ed notice for reassessment is without jurisdiction in absence of any evidence to substantiate that the petitioner has earned profit which is not disclosed. 6.2 It was further submitted that the transactions carried out by the petitioner are duly supported by the necessary evidence as the same are executed on the Bombay Stock Exchange after payment of STT at the market rate and therefore, the same cannot be prima facie held to be a nongenuine transaction in absence of any contrary material on record. 6.3 It was submitted that on perusal of the reasons recorded, the respondent has failed to provide any specific data against the petitioner which proves that the petitioner is involved in non-genuine transaction as the Assessing Officer has not made any remark or observation that the petitioner is engaged in any transaction which are reported by the SEBI or as per the decision of the Hon'ble Supreme Court relied upon by the Assessing Officer. It was therefore, submitted that on perusal of the reasons recorded for reopening, the same are based only on presumption as the Assessing Officer could not have formed any reasonable belief for escapement of any income more particularly, whe....
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.... Assessing Officer and if the petitioner is aggrieved by any addition which may be made by the Assessing Officer, alternative remedy is available by preferring an appeal. In support of his submissions, learned advocate Mr. Patel has referred to and relied upon the following averments made in the affidavit-in-reply filed on behalf of the respondent: "7. Since, 4 years from the end of the relevant year has expired in this case, the requirement to initiate proceedings u/s. 147 are reason to believe that income for the year under consideration has escaped assessment because of failure on the part of the assessee to disclose fully and truly all material facts necessary for assessment for the assessment year under consideration. It is pertinent to mention here that reasons to believe that income has escaped assessment for the year under consideration have been recorded above. In this regard, it is also pertinent to mention here that above referred details have not been called for by the AO and thus are not been examined by the AO nor such details are furnished by the assessee. It was only after investigation was carried out by Investigation Wing that this scheme of tax evasion c....
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.... assessment, it appears that the petitioner has disclosed the profit earned from the Speculation Profit on currency derivatives of Rs. 50,24,999.94 and Speculation profit on shares of Rs. 1,02,28,243.76 totaling to Rs. 1,52,59,143.70 which is already credited in Profit and Loss Account. It, therefore, cannot be said that the petitioner has not disclosed fully and truly all material facts relevant for assessment. 9. It also appears from the reasons recorded that the no verification of the material on record is made by the respondent and there is no independent opinion that any income has escaped assessment due to any failure on the part of the assessee in not disclosing fully and truly all material facts necessary for assessment. 10. Moreover, from the reasons recorded it appears that the initiation of reopening proceedings are on the borrowed satisfaction as no independent opinion is formed and on bare perusal of the reasons recorded, it emerges that the Assessing Officer, considering the information received from the insight portal, has issued impugned notice forming reason to believe that the income has escaped the assessment on the presumption that the petitioner has been ....