TaxTMI 
TaxTMI 
2024 (3) TMI 1521
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.... date for filing the return of income under section 139 (4) viz 31/3/2017, thereby the notice under section 148 and consequential reassessment order passed under section 147 is bad in law. 2. On the facts and circumstances of the case and in law CIT - A order in confirming the validity of notice under section 148 issued in absence of tangible material and in mechanical manner without obtaining the sanction under section 151 from the correct higher authority." 03. Facts as noted from the record shows that assessee is an individual, partner in firms and director in companies. Assessee did not file any return under section 139 (1) of the act. She filed her return of income on 19/09/2016 declaring total income of Rs. 534270/-. 04. Specific information was received with respect to the bogus claim of the assessee on share trading and therefore notice under section 148 of the act was issued on 12/9/2016 after recording the reasons for reopening. Same was served on the assessee. 05. In response to notice under section 148 of the Act, assessee submitted a letter on 23/9/2016 stating that return of income filed electronically on 19/9/2016 may be treated as a return filed in....
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.... all this contention and stated that assessee has failed to file the return of income under section 139 (1) of the act and belief and information is available with the learned assessing officer, there is no infirmity in the reopening of the assessment made by the learned AO. He further stated that tangible material is available and therefore there is no merit in the objection to the notice issued. Accordingly, all objections against section 148 of the act were rejected. On the merits of the addition action of the learned AO was upheld. Accordingly, the appeal of the assessee was dismissed. 07. Before us, the learned authorized representative submitted a paper book containing 101 pages and relied upon several judicial precedents and case law compilation of 43 pages. Over and above several other judicial precedents were relied upon. 08. On Ground no 2, It was the claim of the learned authorized representative that :- i. The learned authorized representative referred to the reasons recorded placed at page number 3 of the paper book. He submits that the reasons have been recorded in 12/9/2016 wherein the assessing officer has mentioned that assessee has claimed exempt in....
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....ssessing officer. ii. It is not the fact that assessee has not claimed such exemption even in the return of income filed subsequently. iii. It has solidified the reasons recorded by the AO. The reasons recorded by the AO are perfectly based on information available and there is no infirmity in the order of the learned CIT - A in upholding the action under section 148/147 of the Act. 010. We have carefully considered rival contentions, perused orders of lower authorities, paper book and judicial precedents cited before us by the parties. Facts can be put in a narrow compass as under :- Sr No Particulars Date chart for AY 2015-16 1 Due date for filing ROI u/s 139 (1) of the Act 31/07/2015 2 Last date for filing of ROI u/s 139 (4) of the Act [ Belated Return] 31/03/2017 3 Due date for issue of notice u/s 143 (2) of the Act 30/09/2017 4 Notice issued u/s 148 of the Act 12/09/2016 5 Return of Income filed by assessee u/s 139 (4) of the Act 19/09/2016 6 Reiteration of ROI filed u/s 139 (4) in response to notice u/s 148 of the Act 23/09/2016 7 Communication of Reason recorded to assessee 06/02/201....
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....of key persons were recorded, modus operandi was revealed and it was admitted that they were in the business of providing accommodation entries only. As stated earlier, you are one of such person who has availed accommodation entries of bogus capital gain by sale of above mentioned penny stock. Therefore, the transactions claimed by you which resulted into claim of exempt income from Long Term Capital Gains, are not genuine and are merely accommodation entries executed solely to accommodate unaccounted income of assessee in the guise of exempt income from LTCG. 7. The above fact shows that the income has escaped assessment by way of accommodation entry of bogus Long Term Capital Gain, in your case for A.Y. 2015-16. 8. Since the reasons for reassessment in your case has been provided by the undersigned, hereinabove, you are requested to comply with the notice u/s.142(1) which is being sent herewith, at the scheduled time. Yours Faithfully, (SHUBHANGI D NAIK) Income Tax Officer 26-(2)(5) Mumbai" 013. On the basis of above reasons it is apparent that :- i. As per Para no 4 it is mentioned that assessee has claimed exempt long term capital gain....