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TMI Blog2024 (5) TMIX X X X Extracts X X X X X X X X Extracts X X X X ..... assessee which is not sustainable according to ld. AR. We find merit in the contentions of the ld. AR that the AO has recorded the reasons based on the borrowed satisfaction without application of mind and without carrying out any enquiry into case. We also note that assessee filed Schedule-EI which contained the details of exempt income earned during the year by the assessee disclosing sum as long term capital gain from the transaction. Thus the AO noting in the reasons that the assessee has not disclosed the capital gain in the return of income is also not correct by making an addition in the hands of assessee. In our opinion, AO has acted on the borrowed satisfaction without recording his own satisfaction and belief that income of the assessee has escaped assessment. The case of the assessee finds support from the decision of Meenakshi Overseas (P) Ltd. [ 2017 (5) TMI 1428 - DELHI HIGH COURT] We are inclined to quash the assessment framed by the AO as the same lacks of any independent application of mind and is based upon the borrowed satisfaction of the Investigation Wing. Appeal of the assessee is hereby allowed. - SHRI SONJOY SARMA, JUDICIAL MEMBER SHRI GIRISH AGRAWAL, ACCO ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... une of Rs. 9,16,444/- from trading in penny scrip of NYSSA CORPORATION LTD during the relevant year. Therefore, the proceedings u/s 148 of the Act drawn against the assessee seeking necessary approval from the competent authority. The ld. AO further issued statutory notice u/s 142(1) and 143(2) of the Act to the assessee. However, assessee did not file any supporting documents / evidences such as relevant bank account statement, D-mat account statement and the ld. AO treated the entire amount of Rs. 9,16,444/- as unexplained sum u/s 68 of the Act in the hands of assessee. 3. Dissatisfied with the above order, assessee went into the appeal before the ld. CIT(A) where the appeal of the assessee was dismissed. 4. Aggrieved by the above order, assessee is in appeal before the Tribunal raising multiple grounds of appeal. However, the main grievance of the assessee is challenging the validity of assessment on the ground that reasons recorded by the AO for reopening of the assessment lacks the individual application of mind by the AO and the same were recorded in a mechanical manner without carrying out any enquiry and were in fact based upon the borrowed satisfaction. The ld. AR drew our ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... their associates has created a syndicate through which they took cash through different bank A/c. and in return issued cheque to the assessee as sale value of the share scrips of NYSSA CORPORATION LTD. Certain entry during the course of search survey operations has accepted during deposition u/s.131 of the Act that they were indulged in malpractice in order to create capital gain/loss/business loss which ware bogus in nature. On examination of return for the A.Y 2015-16, it is noted that the assessee has claimed an exempt income of Rs. 63,938/- which is mentioned in Schedule-EI. Though as per report the assessee has earned much more LTCG but didn't disclosed such exempt income which indicates the intention of the assessee to conceal this fact from the eye of the department, because bring a beneficiary he has also became a part of the syndicate/racket. That means the assessee during the year received this income by alleged sale of penny stock which is nothing but bringing back of assessees own unaccounted income in the guise of LTCG through arranged transaction with the promoter/broker and mediator. The process was going for just to cover one year from its purchase. As a conseq ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the income as earned from selling of shares. The entire amount of receipt towards alleged sale of the scrips of NYSSA CORPORATION LTD. through exchange in connivance with the entry operators others associated are actually the income of the assessee. Therefore, I have reasons to believe that for the A.Y. 2015-16, income chargeable to tax to the tune of Rs. 9,16,444/- has escaped assessment. Hence, the provision of section 147 of the Income Tax Act, 1961 is attracted to this case. In this case no assessment was made u/s 143(3)/147 of the Act. Only procession of return u/s 143(1) was done. In view of the above findings, the provisions of clause (b) of explanation 2 to section 147 are applicable to facts of this case and the assessment year under consideration is needed to be a case where income chargeable to tax has escaped assessment. This case is within four years from the end of the assessment year under consideration. Hence, necessary sanction to issue notice u/s 148 is requested before Addl. CIT as per the provisions of section 151 of the Act. Put up before the Addl. CIT, Range-37, Kolkata for his kind perusal and necessary approval of issuing notice u/s 148 of the Income-tax Ac ..... X X X X Extracts X X X X X X X X Extracts X X X X
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