TaxTMI 
TaxTMI 
2025 (3) TMI 2179
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....sed u/s.143(1). Later on, the assessee's case was reopened by issuance of notice u/s.148 dated 30/03/2019 after recording the following reasons dated 29/09/2019. "REASON OF RE-OPENING OF THE ASSESSMENT U/S 147 r.w.s 148 1 The assessee, Sri Dharmil Anil Bodanl had filed the return of income for A.Y. 2012-13 on 27.07.2012 declaring total income of Rs 76.24 160/- which was processed u/s. 143(1) of the I.T: Act, 1961. An Information has been received from the ITO Ward 3(4). Sharanpur, Mumbai vide letter dated 18.04.2016. As per information the following BSE listed penny stock company has been used for generating bogus long term capital gain: Sr. No. Full Name of Penny Scrip 1 M/s Kyra Landscapes Ltd (Earlier known as TCL Technologies Ltd. and later on as M/s Aricent Infra Ltd.) 2. As per the information received during the course of assessment proceedings in a case it was found that a penny stock viz. M/s Kyra landscapes Itd. (Earlier known as TCL Technologies Ltd. and later on as M/s Aricent Infra Ltd.) was used by various beneficiaries to convert their undisclosed income (black money) into tax exempt long term capital gain(LTCG) by first purchas....
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....ctly the copy of same reasons recorded. In response to said notice, assessee filed his return of income on 10/04/2019 and requested the AO to provide reasons for reopening the assessment. After getting the reasons recorded assessee filed an objection before the AO vide letter dated 15/10/2019 and in the said objection assessee had specifically stated that, first of all, the said allegation made in the reasons are baseless and incorrect on facts because the total value of sale of shares transacted in the relevant F.Y. 2011-12 (A.Y.2012-13) was only Rs. 79,22,136/- and not Rs. 3,98,17,137/- Further, assessee has also stated that in the return of income filed for A.Y.2012-13 on 27/07.2012 assessee had duly disclosed long term capital gain at Rs. 71,72,136/- on the sale of shares of M/s. Kyra Landscapes Ltd., The relevant portion of reply is reproduced hereunder:- "In this context it is submitted that the said allegation is baseless and unwarranted on the facts of the case. At the outset please note total value of trade done in FY 11-12 is only Rs. 79,22,136/- and not Rs. 3,98,17,137/- as alleged in reasons for reopening. Assessee has filed the return of Income for AY 2012-13 ....
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.... Court in the case of GKN Driveshaft Ltd., vs. ITO reported in 259 ITR 19. However, the ld. CIT (A) has rejected the said submissions of the assessee after quoting certain decisions and the proposition laid down therein which was on general principles of reopening and was not even remotely connected to the facts of the assessee's case or specific objection raised by the assessee; and held that information received from ITO was based on detailed investigation carried out by the department, hence, there was a prima facie belief based on this information that income had escaped assessment. 6. We have heard both the parties at length on the legal issue and also perused the relevant finding given in the impugned order as well as material referred to before us. As stated above and is also evident from the reasons recorded communicated twice by the ld. AO, one on 29/09/2019 and other on 09/10/2019 that there was certain information received from ITO Ward(E)-4, Sharanpur, Mumbai vide letter dated 18/04/2016. As per the information there was a penny stock company, named M/s. Kyra Landscapes Ltd. (earlier known as TCL Technologies Ltd.) and as per the information assessee was also one of ....
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....e, the reasons as made available to the Respondent- Assessee as produced before the Tribunal merely indicates information received from the DIT (Investigation) about a particular entity, entering into suspicious transactions. However, that material is not further linked by any reason to come to the conclusion that the Respondent-Assessee has indulged in any activity which could give rise to reason to believe on the part of the Assessing Officer that income chargeable to tax has escaped Assessment. It is for this reason that the recorded reasons even does not indicate the amount which according to the Assessing Officer, has escaped Assessment. This is an evidence of a fishing enquiry and not a reasonable belief that income chargeable to tax has escaped assessment. 14. Further, the reasons clearly shows that the Assessing Officer has not applied his mind to the information received by him from the DDIT (Inv.). The Assessing Officer has merely issued a re-opening notice on the basis of intimation regarding re-opening notice from the DDIT (Inv) This is clearly in breach of the settled position in law that re- opening notice has to be issued by the Assessing Office on his own s....