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TMI Blog2022 (4) TMI 1396X X X X Extracts X X X X X X X X Extracts X X X X ..... to disclose. Therefore, it cannot be stated that Respondents have crossed the threshold or the fetter provided for in the proviso to Section 147 of the Act that re-opening after the expiry of four years is permissible only when there is failure to truly and fully disclosed material facts. - WRIT PETITION NO. 1882 OF 2022 - - - Dated:- 27-4-2022 - K.R. SHRIRAM AND N.R. BORKAR, JJ. Mr. Nishant Thakkar alongwith Ms. Jasmin Amalsadvala instructed by Lumiere Law Partners for the Petitioner. Mr. Suresh Kumar for the Respondents. P.C. :- 1. Petitioner is an individual assessed to tax. Petitioner had, for the Assessment Year 2013-2014 filed return of income under Section 139 of the Income Tax Act, 1961 (the said Act) on 14 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... notice dated 28th March, 2021 under Section 148 of the Act alleging that there were reasons to believe that Petitioner s income chargeable to tax for A.Y. 2013-14 has escaped assessment within the meaning of Section 147 of the Act. At Petitioner s request, reasons recorded for re-opening was also provided vide communication dated 1st July, 2021. As per the reasons recorded, based on information received from DDIT (Inv), Mumbai, Petitioner had done transactions in the share of Finalysis which is a penny stock company traded in the Bombay Stock Exchange. The share price of Finalysis moved from a low of Rs.7/- per share in March 2012 to Rs.180/- in March 2013 and dipped to Rs.5/- in October 2013. Since the financials of Finalysis for that per ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of assessee to truly and fully disclose material fact for the relevant assessment year. The onus is on Respondents to show that there was such a failure on the part of Petitioner to truly and fully disclose. 4. It is also trite that if during the assessment proceedings a query is raised and the assessee has replied to it, it follows that the query raised was a subject of consideration of the Assessing Officer while completing the assessment and it is not necessary that the Assessment Order should contain reference and/or discussion to disclose its satisfaction in respect of the query raised. ( Aroni Commercials Ltd. v. Deputy Commissioner of Income Tax 2(1) [2014] 44 taxmann.com 304 (Bombay))). 5. It is not clear when the investi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... we have to see in this case, since re-opening is proposed after the expiry of four years from the end of the relevant assessment year, whether there has been any failure on the part of Petitioner to disclose truly and fully material facts. As noted earlier the reasons recorded admit that Petitioner had disclosed that it had traded in the shares of Finalysis. To a query raised under Section 142(1), Petitioner has also admitted that it has traded in Finalysis and even provided documents thereto. The issue of capital gains from shares which included the shares of Finalysis was under active consideration before the Assessing Officer. That would also show there was no failure to disclose. Therefore, it cannot be stated that Respondents have cros ..... X X X X Extracts X X X X X X X X Extracts X X X X
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