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TMI Blog2024 (8) TMI 1008X X X X Extracts X X X X X X X X Extracts X X X X ..... reassessment proceedings in the case of the assessee and on the basis of the aforesaid information, the AO initiated proceedings under section 147 of the Act and issued a notice u/s 148. Thus, sufficiency or correctness of the material is not a thing to be considered at the stage of recording the reasons. As a result, we find no infirmity in the reassessment proceedings initiated by the AO under section 147 of the Act. Bogus STCG - The lower authorities have not examined the details furnished by the assessee and have not analysed the claim of the assessee in light of those details. Further, no material is available on record to show that the assessee was put to notice before disputing the source of the payment made for purchasing the share ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ome. 2. On the facts and in the circumstances of the case and in law, the faceless Ld CIT(A) erred in uploading the order of equally the Ld A.O. in reopening the assessment under section 147 when there was no income that had escaped assessment. 3. On the facts and in the circumstances of the case and in law, the faceless Ld CIT(A) has not taken into account the entire submissions made nor the various case laws that were submitted on the issue. 4. On the facts and in the circumstances of the case, the faceless Ld CIT(A) has ignored that the rules of natural justice have been ignored, by not providing a cross examination of the party from which this information was received. 5. The faceless Ld CIT(A) while placing reliance on a third party Co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gus. 4. The brief facts of the case are that the assessee is an individual and for the year under consideration filed its return of income on 25/07/2012 declaring a total income of INR 26,71,714. During the year, the assessee earned income from salary, short-term capital gains, and income from other sources. The return filed by the assessee was processed under section 143(1) of the Act. Subsequently, on the basis of the information received from DDIT(Investigation), Unit-6(2), Mumbai that the assessee has made transactions in the scrip M/s VAS Infrastructure Ltd, which is a penny stock scrip, notice under section 148 of the Act was issued on 29/03/2018 and proceedings under section 147 of the Act were initiated. In response to the said noti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tatements of the company and comparison of the past earning growth, the AO treated the transaction by the assessee as bogus and the entire sale consideration of the above transaction and 5% commission thereon is added to the total income of the assessee under the head income from other sources as unexplained cash credit under section 68 of the Act. 5. The learned CIT(A), vide impugned order, dismissed the appeal filed by the assessee and held that the contract notes and cheque payments do not necessarily prove that the transaction was genuine but instead only indicate that the paperwork or documentation is in order. The learned CIT(A) further by considering the bank statement of the assessee held that the payment made for the purchase of sh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion), Unit-6(2), Mumbai initiated the reassessment proceedings. We are of the considered view that the said information constitutes new and tangible material for initiating the reassessment proceedings in the case of the assessee and on the basis of the aforesaid information, the AO initiated proceedings under section 147 of the Act and issued a notice under section 148 of the Act. In ACIT v. Rajesh Jhaveri Stock Brokers (P.) Ltd, [2007] 291 ITR 500 (SC), the Hon ble Supreme Court held that if there is relevant material on the basis of which a reasonable person can form a requisite belief that income chargeable to tax has escaped assessment, then proceedings under section 147 of the Act can be validly initiated. In the present case, as note ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... viders for the assessee. 9. We find that the learned CIT(A) though referred to the aforesaid submissions on pages 5-6 of the impugned order, however, only commented on the volatility in the price of the scrip and did not analyse the details furnished by the assessee. We further find that the learned CIT(A) sustained the addition on an altogether new basis that the source of funds for making the investment in shares of VAS Infrastructure Ltd is not proved from the bank statement of the assessee. 10. Therefore, from the record, it is sufficiently evident that the lower authorities have not examined the details furnished by the assessee and have not analysed the claim of the assessee in light of those details. Further, no material is available ..... X X X X Extracts X X X X X X X X Extracts X X X X
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