9911796707
TMI Blog2024 (4) TMI 1053X X X X Extracts X X X X X X X X Extracts X X X X ..... levied by the ld. AO u/s. 271(1)(b) for non-compliance of 3 notices u/s. 142(1). 3. The brief facts are that a notice u/s. 148 was issued to the assessee vide notice dated 31/03/2021, based on the information that assessee has entered into fictitious transaction through M/s. Wellworth Shares & Stock Broking Ltd. for sum value of Rs. 1,27,52,200/- in the A.Y. 2014-15 and Rs. 1,45,000/- in A.Y. 2015-16. The allegation was that assessee had shown fictitious profit in equity derivative trading and assessee has failed to offer this income or has not disclosed this transaction. In response to notice u/s. 148 assessee has filed its return of income. During the course of assessment proceedings, a notice u/s. 142(1) was issued on 26/11/2021 to subm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted that when assessee was issued a notice u/s. 143(2), assessee has filed objection that assessee's case has been reopened on a wrong facts and the transaction which has been stated in the 'reasons recorded' have already been offered to tax and therefore, there was no escapement of income. Further, assessee had also filed reply and details as and when required. The chronology of events and the remarks for each date of compliance and the replies filed before the AO during the course of assessment proceedings as highlighted before the ld. CIT (A) are reproduced hereunder:- Date Event Reply Date Remark 31.03.2021 Notice u/s. 148 of Income Tax was issued 31.03.2021 Return was filed in response to Notice issued u/s. 148. 28.06.2021 No ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s Pvt. Ltd. were already offered for taxed and part of profit & loss account. Further if addition will made then it will amount to double taxation. Appellant also filed global report and sample contract note also. Further, appellant had submitted the MCA Company master data of M/s Latin Manharlal Securities Pvt Ltd and brought to knowledge of Ld. AO that as per notice statement of Shri Sanjay Kumar Periwal and Shri Harshvardhan ayan were attached with notice. However, no such statement was attached with the notice. Further, how these people are related to our Broker Latin Manharlal Securities Pvt Ltd were also not established. A non-related person statement cannot be relied against the assessee without providing the copy of statement and o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l further pointed out that before the authorities below assessee had duly submitted that there was delay in response to the notice and not that notices had not been responded. Reason for delay was stated as under:- a) Time taken for retrieving old data b) Due to heavy losses and small-scale business operation after COVID, office was not regular. c) Appellant had no employee and only old-age director's was handling all the affairs of appellant. They are not familiar with online technicalities. d) But, later on with help of CA Himanshu Gandhi all details were filed and duly acknowledge by Ld. AO in assessment order. e) Even, appellant appeared in Video Conferencing also which is mentioned to Page No. 16 of Assessment order also. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... here is failure to respond on the date mentioned in the notice. Delay in late response have been explained that; firstly, it was an old matter and assessee took time for retrieving the old date; secondly, assessee was having heavy losses due to small scale business operation after Covid and during the Covid period office of the assessee was also not opened. Apart from that, assessee has no employee and director was old and was the only person who was handling the affairs of the assessee company and was not aware of any online technicalities of notices sent through online. It was later on when assessee sought for assistance of a Chartered Accountant; the assessee compiled and filed all the details before the ld. AO which has been duly acknow ..... X X X X Extracts X X X X X X X X Extracts X X X X
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