TaxTMI 
TaxTMI 
2025 (3) TMI 1961
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..../s 147 of the Act have not been fulfilled. With other grounds, the assessee has challenged the addition on merits of the case. Since the challenge to the assumption of jurisdiction goes to the root of the matter, we adjudicate it first. 4. Representatives of both the sides were heard at length, case records carefully perused and the relevant documentary evidence brought on record, duly considered in the light of Rule 18(6) of the ITAT Rules, 1963. 5. Briefly stated, the facts of the case are that vide notice dated 31/03/2021 issued u/s 148 of the Act, the AO assumed jurisdiction for initiating reassessment proceedings within the meaning of Section 147 of the Act. The reasons recorded for reopening of assessment is identical in both the years and for AY 2013-14, it reads as under:- GOVERNMENT OF INDIA MINISTRY OF FINANCE INCOME TAX DEPARTMENT OFFICE OF THE INCOME TAX OFFICER WARD 12(2)(1), MUMBAI/ To, GRACEUNITED DEVELOPERS PRIVATE LIMITED FLAT NO. 704 BUILDING NO. 13A .SIDDHARTH NAGAR, KHATAU MILL COMPOUND WE HIGHWAY, BORIVALI PAN: AACCG6261E Assessment Year: 2013-14 DIN & Notice No: ITBA/AST/F/143(2)_4/2021- 22/1033738764(1) ....
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...., which were specifically analyzed in the run-up to the search action. The details of the penny stocks are as under:- 1. VMS Industries Ltd. 2. Aditya consumer Marketing Limited (ACML) 3. Steel Exchange Limited 4. Scan Steels Limited 5. Nyssa Corporation Ltd. 6. Diving Multimedia India Ltd ./Kaleidoscopic Films Ltd. 7. Shantanu Sheoray Aquakult ltd/52 Weeks 8. Aagam Capital Ltd. (Old Name: Shubhkam Capital Ltd. 9. Oasis Tradelink Ltd. 10. Monotype India Ltd. 11. Diamant Infrastructure Ltd. 12. Riddhi Steel & Tube Limited. One of the beneficiaries who take accommodation entry/ies (in the form bogus LTCG, bogus short term loss/gain) from is as under: Sr. No. Name of the Beneficiary A.Y. Amount (In Rs. ) 1 Graceunited Developers Private Limited 2013-14 3,11,11,713/- On verification of information it is seen that M/s. Graceunited Developers Private Limited PAN: AACCG6261E brings unaccounted Income into its books of account without paying taxes through accommodation entry in form of bogus long term capital gain or bogus short term capital ....
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.....in) at your convenience on or before 13/07/2021 4. In course of assessment proceedings, if required specific questionnaire(s) or requisition(s) for information/document may be issued subsequently 5. A brief note on E- Proceeding is enclosed for your kind reference. In case you require any assistance in filing your response, you may contact toll free Call Centre number 1800 103 4215 6. Enclosure: As above." 6. We have carefully perused the aforementioned reasons recorded for reopening the assessment. We find that the very basis of reopening the assessment is based on erroneous facts. Firstly, the assessee has nowhere claimed any long term capital gains/loss in the alleged penny stocks and secondly, the list of the penny stocks mentioned in the reasons, the assessee has not done any transactions in those stocks and most importantly, the claim of the AO that no regular assessment u/s 143(3) of the Act was made is factually incorrect. The original assessment for AY 2013-14 was framed u/s 143(3) of the Act vide order dated 28/01/2016 and for AY 2014-15 vide order dated 26/12/2016. Both the assessment orders are on record. 7. Notice u/s 148 of the Act ha....
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....loss from alleged long term capital gain/loss and rigging of the price of various scrips of stock exchange by the syndicate of persons engaged in providing bogus long term capital gain/loss to the beneficiaries. The assessee has raised specific objections challenging the reopening of assessment and in its objections, the assessee has brought to the notice of the AO that it is incorrect to say that no scrutiny assessment was made for the assessment years under consideration as this assertion is blatantly incorrect and far from the true facts as mentioned hereinabove, scrutiny assessment was made u/s 143(3) of the Act. Therefore, application of clause (b) to Explanation (2) of Section 147 of the Act is not applicable on the facts mentioned hereinabove. 8.2. As mentioned above, first proviso to Section 147 of the Act, squarely applies and there is not even a whisper of failure on the part of the assessee to disclose fully and truly, all material facts for assessment as the audited statement of accounts show the nature of business of the assessee which is trading in shares and the financial details furnished show the opening stock of these scrips purchased during the year as well as....