9911796707
TMI Blog2018 (9) TMI 1699X X X X Extracts X X X X X X X X Extracts X X X X ..... er : Mr S N Divatia, Advocate ORAL ORDER ( PER : HONOURABLE Mr. JUSTICE AKIL KURESHI ) Petitioner has challenged a notice of reopening of his assessment for AY 2011-2012. The petitioner had filed return of income for the said year on 1st October 2011, declaring total income at ₹ 51.80 lakhs [rounded off]. Such return was scrutinized by the Assessing Officer. He passed an order of assessment under Section 143 [3] of the Income-tax Act, 1961 [ the Act for short] on 10th March 2014 assessing total income at ₹ 57.89 lakhs [rounded off]. To reopen such assessment, impugned notice has been issued, which as can be seen from the record, was done beyond the period of four years from the end of relevant assessment year. In order to issue such notice, he had recorded the following reasons : Reasons for the belief that the income has escaped assessment for reopening the case u/s. 147 of the Income Tax Act, 1961. In this case, the assessee has filed return on 01.10.2011 declaring total income at ₹ 51,88,324/- for the A.Y. 2011-12. 2. Subsequently, on the basis of information received from the DDIT (Inv.), Unit-6(2), Mumbai vid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 574 VAS INFRA 10/11/10 100 91.65 9165 - do - LALITBHAI BABUBHAI PATEL ACTPP0 291P 531574 VAS INFRA 10/11/10 40 91.65 3666 -do- LALITBHAI BABUBHAI PATEL ACTPP0 291P 531574 VAS INFRA 10/11/10 60 91.65 5499 - do - LALITBHAI BABUBHAI PATEL ACTPP0 291P 531574 VAS INFRA 10/11/10 100 91.6 9160 - do - LALITBHAI BABUBHAI PATEL ACTPP0 291P 531574 VAS INFRA 10/11/10 1 91.55 91.55 - do - LALITBHAI BABUBHAI PATEL ACTPP0 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... LALITBHAI BABUBHAI PATEL ACTPP0 291P 531574 VAS INFRA 10/13/10 164 87.6 14366.4 - do - LALITBHAI BABUBHAI PATEL ACTPP0 291P 531574 VAS INFRA 10.28.10 684 89.1 60944.4 - do - LALITBHAI BABUBHAI PATEL ACTPP0 291P 531574 VAS INFRA 10.28.10 187 89 16643 - do - LALITBHAI BABUBHAI PATEL ACTPP0 291P 531574 VAS INFRA 10.28.10 247 89 21983 - do - LALITBHAI BABUBHAI PATEL ACTPP0 291P 531574 VAS INFRA 10.28.10 300 89 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 11/10/10 1000 169 169000 FCH Centrum Wealth Managers Limited LALITBHAI BABUBHAI PATEL ACTPP02 91P 531574 VAS INFRA 11/10/10 200 169 33800 - do - LALITBHAI BABUBHAI PATEL ACTPP02 91P 531574 VAS INFRA 11/10/10 4720 168 792960 - do - LALITBHAI BABUBHAI PATEL ACTPP02 91P TOTAL 995760 2. On analysis of the trade data of M/s. VAS Infrastructure Limited, it is found that the assessee is one of the beneficiaries who have traded in this scrip for a total trade value of ₹ 24,60,983/= during FY 2010-11. The said scrip is listed as penny stock by the BSE. Therefore, it is cle ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessment was therefore no justified. He further submitted that the total value of purchase and sale of shares by the assessee to arrive at a figure, which according to him had escaped assessment to tax, is wholly incorrect exercise. He lastly contended that the assessee had offered both purchase and sale of shares to tax. There is thus no escapement of income. In the facts of the present case, we are not inclined to interfere. According to Assessing Officer, VAS Infrastructure Limited is a shell company and the purchase and sale of shares in such company by investors was only for the purpose of showing profit or loss, which had actually not occurred. There was prima facie information at the command of the Assessing Officer that the fluctuation in share price was not justified. All these materials were brought to his notice long after the assessment was over. The assessee, therefore, cannot take shelter of having made full and true disclosure. Further, to what exact income had escaped assessment may be open for argument, nevertheless, would not be a ground to quash the notice of reopening. To what extent; if at all the assessee s income escaped assessment could be, in the p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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