TaxTMI 
TaxTMI 
2025 (9) TMI 1133
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....el Mr. Varun Patel for the respondent. 2. Having regard to the controversy arising in this petition which is in narrow compass with the consent of the learned advocates for the respective parties the same is taken up for hearing. 3. Rule returnable forthwith. Learned Senior Standing Counsel Mr. Varun K. Patel waives service of notice of rule on behalf of the respondent. 4. Present petition preferred under Article 226 of the Constitution of India assails the validity of order dated 13.04.2023 passed under Section 148A(d) of the Income Tax Act, 1961 (hereinafter referred to as "the Act" for short) along with notice issued under Section 148 of the Act dated 13.04.2023 for the Assessment Year 2016-17 by the Income Tax Officer, Ward-1(2....
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....f Crypto Currency. 5.2. The said notices was responded by the petitioner by replies dated 27.01.2022 and 07.03.2022 wherein it was contended that the Crypto Currency transacted by the petitioner were entered in due course of their business transactions and the transactions were already declared by the petitioner in their business returns. It is the case of the petitioner that regular assessment was completed and Assessment Order under Section 147 read with Section 144B of the Act was passed on 15.03.2022 for the Assessment Year 2016-17 computing the total income of petitioner at Rs.3,20,580/-. It is further the case of the petitioner that the respondent once again initiated the assessment proceedings under the new regime under Section 14....
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....der Section 147 of the Act read with Section 144B of the Act on 15.03.2022. It was therefore submitted that on the very same issue which is already considered by the Assessing Officer, again notice issued under Section 148A(b) of the Act could not have been issued. Therefore, the impugned order passed under Section 143A(d) of the Act and notice under Section 148 of the Act are absolutely without jurisdiction and patently bad in law. 7. Per contra, learned Senior Standing Counsel Mr. Varun K. Patel for the respondent was not in a position to defend the contentions raised by learned advocate Mr. Divatia and conceded to the fact upon instructions that the reasons which were subject matter of challenge were also recorded in the original Asse....
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....ypto is transacted through my business and not as special transactions and I have considered as exchange gain and shown as my business profit. On perusal of the ledger account with ZEB IT Services and bank account, it is seen that an amount of Rs.8,77,250/- has been received from ZEB IT Services and credited in the Yes Bank A/c. No. 785800000114 on 25.03.2016. As mentioned above the assessee has purchased Crypto Currency of Rs.51,12,340/- and sold at Rs.59,89,590/-. Thus, the profit on sale of Crypto Currency comes to Rs.8,77,250/- which has to be treated as income from Capital Gain. Since the assessee has not shown any Capital Gain in the return of income, the profit of Rs.8,77,250/- is proposed to be treated as income from Capita....
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....l in accordance with the risk management strategy formulated by the Central Board of Direct Taxes. Above mentioned information fails under the definition of Explanation (i) of Section 148 of the Act which became effective from 01.04.2021. On going through the various information available with this office and inquiries conducted by this office, it appears that the transactions carried out by you has escaped assessment within the meaning of Section 147 of the Income Tax Act for the AY 2016-17." 9. On going through the same, it is not in dispute that the reasons recorded in the notice issued under Section 148A(b) of the Act was already considered by the Assessing Officer in the Assessment Order dated 15.03.2022. The Assessing Officer does ....