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TMI Blog2024 (3) TMI 481X X X X Extracts X X X X X X X X Extracts X X X X ..... mation suggested that Petitioner had booked a loss and fictitious loss and when Petitioner has given evidence that the entire information is incorrect and infact Petitioner has made a profit AO should have reflected on the information submitted by Petitioner and passed orders suitably. In the order passed u/s 148A(d) AO has reproduced the entire reply given by Petitioner to the notice issued u/s 148A(b) of the Act and therefore, even Petitioner s case was before the PCIT who accorded sanction u/s 151 - The fact that PCIT has granted sanction when Petitioner has highlighted that the entire information, based on which the notice u/s 148A(b) issued was incorrect, the PCIT should have either refused to grant sanction or directed the AO to deal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ner received a notice dated 10th March 2023 issued under Section 148A(b) of the Act, in which it was alleged that as per the information uploaded on Insite Portal, which has surfaced out of investigation carried out by the DDIT (Inv)-5, New Delhi, wherein eighteen penny scripts were identified Toyam Industries Limited is one of such penny scripts used .. . Petitioner had carried out transactions in the said script and booked fictitious losses of Rs. 5,17,15,668/- and two more entities viz. Proaim Enterprise Limited and Rockon Enterprise Limited also had booked fictitious loss of Rs. 75,33,469/- and Rs. 71,66,679/- respectively. 5. Petitioner replied to the notice vide its Chartered Accountant s letter dated 23rd March 2023 and explained tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... loss amounting to Rs. 6,64,15,810/- is actually a bogus loss booked by assessee is not incorrect. According to the AO, it is not necessary to have conclusive proof of escapement of income at the stage of issuance of notice under Section 148 of the Act. 7. According to us, this order passed under Section 148A(d) of the Act defies sense because the entire basis on which the notice under Section 148A(b) of the Act was issued, is because the information suggested that Petitioner had booked a loss of Rs. 5,17,15,668/- and Proaim Enterprise Limited and Rockon Enterprise Limited had booked fictitious loss of Rs. 75,33,469/- and Rs. 71,66,673/- respectively. When Petitioner has given evidence that the entire information is incorrect and infact Pet ..... X X X X Extracts X X X X X X X X Extracts X X X X
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