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TMI Blog2019 (3) TMI 558X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Income Tax Act, 1961. 2. On facts and in the circumstances of the case and in law, the honorable Commissioner of Income Tax (Appeals) erred in not giving the proper opportunity of being heard. 3. On facts and in the circumstances of the case and in law, the honorable Commissioner of Income Tax (Appeals) erred in upholding the initiation of the reassessment proceedings without proper application of mind and in violation of the legal principles. 4. On facts and in the circumstances of the case and in law, the honorable Commissioner of Income Tax (Appeals) erred in upholding the ground of not communicating the reasons recorded in writing for issue of Notice u/s 147 of Income tax act, 1961. His denial to inform the assessee of such reasons is fatal to the reassessment proceedings. 5. On facts and in the circumstances of the case and in law, the honorable Commissioner of Income Tax (Appeals) erred in upholding the ground of not replying to the objections of the assessee against the issue of notice u/s 147. He fur ther erred in upholding the ground of f inal izing the assessment before disposing off the objections of the assessee. 6. On facts and in the circumstances of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ny stocks of Rutron International Ltd. and were shown as exempt u/s 10(38) of the IT Act was backed by a pre-arranged method that was employed by her in connivance with operators to evade taxes. On the basis of his aforesaid observations the A.O was of the view that the assessee in the garb of bogus share transactions had routed her unaccounted money that was earned from undisclosed sources into her accounts/books. The A.O deliberated at length on the modus operandi that was adopted by the operators of the penny stocks. It was observed by him that the operators would initially get the shares of the penny stock companies allotted to the beneficiaries at very low prices through preferences allotment and off-market transactions. Subsequently, in order to increase the volume of the shareholding of the beneficiaries the same would be supplemented by granting bonus shares. Thereafter, the prices of the shares of the penny stock companies would be rigged and raised through circular trading which would be managed by the operator of the scrip. Once the period of one year passed and the share prices were sufficiently rigged, then the beneficiary would sell their shares at an inflated price ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the hands of the assessee despite repeated requests made vide her letters dated 16.01.2017, 21.09.2017 and 16.01.2018 were not made available. It was submitted by the ld. A.R that the aforesaid documents were indispensably required by the assessee for meeting out the adverse inferences that were drawn in her hands. The ld. A.R taking support of the aforesaid 'Affidavit' submitted that in the backdrop of the aforesaid facts the CIT(A) had on different occasions allowed adjournments to the assessee. It was further submitted by the ld. A.R that the authorized representatives for the assessee had also requested the CIT(A) to direct the A.O to make available the aforesaid documents, as the same had a strong bearing on the disposal of the appeal before him. The ld. A.R further submitted that the authorized representatives on the last occasion i.e on 02.08.2008 had sought an adjournment and were informed by the office staff of the CIT(A) that a fresh date of hearing would be given. The ld. A.R submitted that despite the aforesaid assurance no fresh notice was issued and rather the CIT(A) on 13.08.2018 dismissed the appeal by way of an exparte order. It was submitted by the ld. A.R that u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dences and statements relied upon by learned AO to make additions so as to enable Assessee to file detailed submissions and meet the objections of learned A.O. 4. I say that the adjournment was granted from time to time on above ground. I say that our authorised representative had further written to learned CIT (A) to direct learned AO to supply us the said material. 5. I say that on 02-08-2018, our authorised representative attended with the adjournment letter . I say that he was informed by the staf f of CIT(A) -37 that a fresh date of hearing will be issued. I say that no fresh notice was issued. 6. I say that the learned CIT (A) -37 passed the impugned order on 13/08/2018. 7. I say that we were under a bonaf ide impression that mat ter was adjourned and f resh notice of hearing wi l l be issued and various documents asked for will be supplied to the assessee. 8. I say that non representation of the case before learned CIT(A) was due to circumstances beyond our control and for bonafide reasons." On a perusal of the facts as are discernible from the aforesaid deposition of the assessee, we find ourselves to be in agreement with her claim that her authorized representatives ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wed for statistical purposes. A.Y. 2014-15 ITA No. 5493/Mum/2018 9. We shall now advert to the appeal of the assessee viz. Mrs. Nayna A. Mehta for A.Y 2014-15. Briefly stated, the assessee had filed her return of income for A.Y. 2014-15 on 24.11.2014, declaring total income at Rs. 7,73,600/-. The A.O not accepting the assesses claim of exempt LTCG of Rs. 1,39,34,698/- as was stated by her to have been earned from trading in the penny stocks of M/s Rutron International ltd., therein added the entire sale proceeds of the shares amounting to Rs. 1,44,28,698/- that were received by the assessee and assessed her income at Rs. 1,52,52,290/-. 10. Aggrieved, the assessee carried the matter in appeal before the CIT(A). However, the CIT(A) observing that the assessee had failed to put up an appearance in the course of the appellate proceedings and had adopted a lackadaisical approach with regard to the appellate proceedings, thus upheld the order of the A.O and dismissed the appeal. 11. The assessee being aggrieved with the order of the CIT(A) has carried the matter in appeal before us. As the facts and the issue involved in the present appeal of the assessee remains the same as were th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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