2024 (9) TMI 1955

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....tion 143(3) r.w.s. 147 of the Income Tax Act, 1961 (hereinafter referred to as 'the Act') relating to the Assessment Year 2012-13. 2. The brief facts of the case is that the assessee is an individual engaged in the business of share trading and income from other sources. For the Asst. Year 2012-13, the assessee filed his original Return of Income u/s. 139(1) on 31.08.2012 declaring total income of Rs. 3,62,340/-. The assessment was reopened based on the information received from the Mumbai Investigation Directorate vide letter/mail dated 27.03.2019, a search and seizure action was carried out on Shri Naresh Jain and his associates throughout the country by DIT (inv.)-2, Mumbai on 19/03/2019 which concluded on 21/03/2019. The search ....

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....erefore, there was reason to believe that income has escaped assessment within the meaning of section 147 of the I.T. Act and such escaped income exceeded Rs. 1,00,000/-. 3. In response, the assessee a return on 19.04.2019 declaring the very same total income of Rs. 3,62,370/-. The assessee was issued a show cause notice on 28.11.2019 why not to make an addition of Rs. 10,07,173/- on the transaction carried out in the scrip namely ' Scan Steel Ltd." 4. The assessee replied that he has not been involved entering providing business and he has regularly engaged in share trading business doing the sales through registered brokers in the stock exchanges. In support of the same stock broker contract note share investments acc....

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....g 957300.05. It is very same set of shares were sold as intraday sale at Rs. 180.51 for a total consideration of Rs. 1007092.06. Thus there is a profit of 49792 by way of intraday trade of this share namely Scan Steel Ltd. The assessee being a trader of share has done many other shares namely Reliance Capital, Reliance Infra and other shares. As it can be seen from the reasons recorded by the Assessing Officer, the assessee generated bogus long term capital gain/bogus short term capital loss/bogus business loss by selling the scrip namely Scan Steel Ltd. Thus the escaped income exceeded Rs. 1,00,000/-, whereas seen from the intraday sale of Scan Steel Ltd. by the assessee, there is a nominal profit of Rs. 49792 only arri....