9911796707
TMI Blog2024 (12) TMI 1430X X X X Extracts X X X X X X X X Extracts X X X X ..... -company was engaged in the activity of trading in shares and securities. During the Financial Year 2013-14 relevant to Assessment Year 2014-15, the petitioner had also entered into transaction in Futures & Options [F & O] and derivatives, which resulted into profit of Rs. 3,33,33,242/-. The petitioner disclosed the same in the Profit and Loss Account and filed return of income for the year under consideration on 30.09.2014 declaring total income at Rs. (-)37,26,445/-. Case of the petitioner was selected for scrutiny and during original assessment proceedings, various details were called for which were duly furnished from time-to-time by the petitioner and the assessment order under section 143 (3) of the Act was passed on 15.12.2016 accepting the returned income. 4.1 The respondent thereafter issued the impugned notice for reopening of the assessment on the information received on the insight portal in March 2021 regarding coordinated and premediated trading on the Bombay Stock Exchange by engaging in reversal trade and illiquid stock options resulting in non-genuine business loss/gain to the beneficiary assessee and it was found that the petitioner is a party to such manipulatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tantiate that the petitioner has earned profit which is not disclosed. 6.2 It was further submitted that the transactions carried out by the petitioner are duly supported by the necessary evidence as the same are executed on the Bombay Stock Exchange after payment of STT at the market rate and therefore, the same cannot be prima facie held to be a non-genuine transaction in absence of any contrary material on record. 6.3 It was submitted that on perusal of the reasons recorded, the respondent has failed to provide any specific data against the petitioner which proves that the petitioner is involved in non-genuine transaction as the Assessing Officer has not made any remark or observation that the petitioner is engaged in transactions which are reported by the SEBI or as per the decision of the Hon'ble Supreme Court relied upon by the Assessing Officer. It was therefore, submitted that on perusal of the reasons recorded for reopening, the same are based only on presumption as the Assessing Officer could not have formed any reasonable belief for escapement of any income more particularly, when the information made available before the Assessing Officer pertains to the loss and not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e by the Assessing Officer, alternative remedy is available by preferring an appeal. In support of his submissions, learned advocate Mr. Patel has referred to and relied upon the following averments made in the affidavit-in-reply filed on behalf of the respondent: "6(ii) With reference to para 3.2, it is submitted that the contention raised by the petitioner is without any base and not tenable in law. Since, 4 years from the end of the relevant year has expired in this case, the requirement to initiate proceedings u/s. 147 are reason to believe that income for the year under consideration has escaped assessment because of failure on the part of the petitioner to disclose fully and truly all material facts necessary for assessment for the assessment year under consideration. It is pertinent to mention here that reasons to believe that income has escaped assessment for the year under consideration have been recorded above. In this regard, it is also pertinent to mention here that above referred details have not been called for by the AO and thus are not been examined by the AO nor such details are furnished by the petitioner. It was only after investigation was carried out by Inves ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n examination on the case records of the petitioner and are self-explanatory. Therefore, no further enquiry is required in this case. On the basis of the same there are reasons to believe that the income chargeable to tax has escaped assessment. (v) With reference to para 3.5, it is submitted that in this case, specific information has been received on INSIGHT PORTAL and flagged as HIGH RISK category case by Directorate of Systems Moreover the underlying information is clearly outlining the systematic evasion of taxes by the petitioner. The facts as enumerated above have been found out on examination on the case records of the petitioner and are self-explanatory. Therefore, no further enquiry is required in this case. On the basis of the same there are reasons to believe that the income chargeable to tax has escaped assessment. In view of the foregoing facts, it is sufficiently clear that the petitioner has benefitted to the tune of above income and this has resulted in income amounting to Rs. 1,30,47,000/escaping assessment. Thus, the petitioner has failed to disclose truly and fully all material facts concerning its income for the assessment year under consideration. I, there ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssment. 9. It also appears from the reasons recorded that the no verification of the material on record is made by the respondent and there is no independent opinion that any income has escaped assessment due to any failure on the part of the assessee in not disclosing fully and truly all material facts necessary for assessment. 10. Moreover, from the reasons recorded it appears that the initiation of reopening proceedings are on the borrowed satisfaction as no independent opinion is formed and on bare perusal of the reasons recorded, it emerges that the Assessing Officer, considering the information received from the insight portal, has issued impugned notice forming reason to believe that the income has escaped the assessment on the presumption that the petitioner has been involved in creating the non-genuine profit which is already offered to tax in the return of income which is accepted in the regular course of assessment by passing the order under section 143 (3) of the Act. 11. It is also pertinent to note that there is no basis to form reasonable belief for escapement of income except the information made available on the insight portal. The respondent-Assessing Officer h ..... X X X X Extracts X X X X X X X X Extracts X X X X
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