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TMI Blog2022 (5) TMI 1348X X X X Extracts X X X X X X X X Extracts X X X X ..... in the original return. Suspicion cannot be the basis for reassessment and more so when the reassessment is governed by the proviso to sec.147 of the Act. Therefore, we are of the firm view that the Ld.CIT(A) has rightly appreciated the ratio laid down in USHA EXPORTS VERSUS ASSISTANT COMMISSIONER OF INCOME TAX [ 2019 (12) TMI 1210 - BOMBAY HIGH COURT] and quashed the reassessment proceedings as void-ab-initio. We do not find any infirmity in the order passed by the Ld.CIT(A). Hence, the grounds raised by the revenue are dismissed. - I.T.A.No.74/Viz/2021 And Cross Objection No.41/Viz/2021 Arising out of I.T.A.No.74/Viz/2021 - - - Dated:- 26-5-2022 - Shri Duvvuru Rl Reddy, Hon ble Judicial Member And Shri S Balakrishnan, Hon ble Accoun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eopening was made as the assessee did not admit the long term capital gains arising from the sale of shares. However, in the reassessment order, the AO himself mentioned that the assessee had shown the long term capital gains in the income tax return in schedule E1 as exempt income. Therefore, there is no failure on the part of the assessee to disclose the relevant facts. The AO simply wanted to make further enquiries on the basis of certain information received from the Investigation Wing, Kolkata, in order to ascertain the correctness of the claim of the assessee. The AO did not even quantify how much income has escaped assessment. Further contention of the assessee is that primary condition for reopening the assessment beyond 4 years fro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e notice issued u/s 148 of the Act. 3. The Ld.CIT(A) failed to appreciate the material evidences such as barring of the given penny scrips M/s Ecowave Infotech Limited and BSR Finance and Construction Ltd. by the stock exchanges, several inconsistencies in the transactions performed by the assessee like gap of more than 6 months between the purchase of the shares and subsequent payment by assessee, poor financials of the scrips. 4. The Ld.CIT(A) ought to have considered various judicial pronouncements, including the recent judgements like Hon ble Supreme Court and Hon ble Delhi High Court judgement in the case of Saman Poddar Vs. Income Tax Officer (2019) 112 taxmann.com 330 (SC) (2020) 268 taxman 320 (SC) [2019] 112 taxmann.co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ble Bombay High Court in the case of Usha Exports Vs. CIT, 185 DTR 87 (ii) Hon ble High Court of Andhra Pradesh and Telangana in the case of Anne Venkata Vishnu Vara Prasad Vs. ACIT 169 DTR 377 He further submitted that the Ld.CIT(A) has considered jurisdictional High Court s decisions and various judicial pronouncements and passed the order. Therefore, he pleaded that the order passed by the Ld.CIT(A) to be confirmed. 6. We have heard both the parties and perused the material placed on record. It is an admitted fact that the assessment was reopened beyond 4 years. It is also an admitted fact that the assessee has claimed exemption of long term capital gains in the original return of income and the reopening notice was issued by th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Jurisdictional High court of Andhra Pradesh and Telangana has held that the jurisdictional condition precedent for reopening an assessment beyond a period of 4 years was that there must be failure on the part of the petitioner to disclose fully and truly all the material facts necessary for assessment for that year and also that the income chargeable to tax had escaped assessment would amount to or was likely to one lakh rupees or more. In the absence thereof, reopening of such assessment beyond the period of 4 years cannot be countenanced. In this case also, there is no failure on the part of the assessee to furnish all necessary material for the purpose of assessment. The Ld.CIT(A) considered the ratio laid down in the above said decis ..... X X X X Extracts X X X X X X X X Extracts X X X X
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