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TMI Blog2025 (4) TMI 1475X X X X Extracts X X X X X X X X Extracts X X X X ..... (Scrip Code: 511421) during the year under consideration'. 2. Whether on the facts and in circumstances of the case and in law, the Ld. CIT(A) has erred in ignoring the crucial finding of the Investigation carried out by the Kolkata Investigation Directorate and their detailed investigation report titled Project Bogus LTCG/ STCG through BSE listed Penny Stock" and assessee is one of the beneficiary of that dubious scheme. 3. Whether on the facts and in circumstance of the case and in law, Ld. CIT(A) ignores the facts brought on record establishing manipulation of share prices of M/s Pine Animation Limited (Scrip Code: 511421) as part of colourable device to generate fictitious Long Term Capital Gain/ Short Term Capital Loss with the aim to evade taxes due. 4. On the facts and the circumstances of the case and in law, the Ld. CIT(A) erred in deleting the addition made by the AO without appreciating the facts that in such penny scrip, trading transactions of purchase and sales are not affected for commercial purpose but to create artificial Gain/loss and complete the cycle of circular trading with a view to evade taxes. 5. On the facts and the circumstance of the case an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ugned assessment order is bad in law and required to be quash." 4. Since the issue raised by way of additional ground in the Cross Objection is a legal issue, which can be decided on the basis of the material available on record, therefore, the same is admitted in view of the ratio laid down by the Hon'ble Supreme Court in NTPC vs. CIT, reported in (1989) 229 ITR 383 (SC). 5. In its appeal, the Revenue has raised the grounds challenging the relief granted by the learned CIT(A) on merits. On the other hand, the assessee has filed the Cross Objection challenging the initiation of reassessment proceedings under section 147 of the Act. As the issues raised by the assessee vide its Cross Objection are jurisdictional issues, which go to the root of the matter, we are considering the same at the outset. During the hearing, the learned Authorized Representative ("learned AR"), by pressing the grounds raised in the Cross Objection submitted that the notice issued under section 148 of the Act in the present case is beyond the limitation period specified under section 149(1) of the Act, and thus, the reassessment order passed under section 147 r.w. section 144B of the Act is void ab initio. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essment proceedings initiated under section 147 of the Act. Being aggrieved, both parties are before us. 9. During the hearing, the learned AR submitted that the year under consideration is assessment year 2015-16, and therefore, the limitation period available with the Assessing Officer under section 149 of the Act for issuance of notice under section 148 of the Act is till 31.03.2022, and therefore, the notice issued under section 148 of the Act on 25.07.2022 is barred by limitation. Hence, it was submitted that the entire re-assessment proceedings culminating in the order passed under section 147 r.w. section 144B of the Act is void ab initio. The learned AR by placing reliance upon various judicial pronouncements, submitted that a similar challenge in respect of the assessment year 2015-16 has been considered by the Hon'ble Delhi High Court and the Co-ordinate Bench of the Tribunal, and the issue was decided in favour of the taxpayer, inter alia, by considering the submission of the Revenue before the Hon'ble Supreme Court in Union of India vs. Rajeev Bansal, reported in (2024) 469 ITR 46 (SC). 10. On the other hand, learned Departmental Representative ("learned DR") vehement ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ew regime. Once the first proviso to section 149(1)(b) is read with Taxation and other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020, then all the notices issued between April 1, 2021 and June 30, 2021 pertaining to the assessment years 2013-2014, 2014-2015, 2015-2016, 2016-2017, and 2017- 2018 will be within the period of limitation as explained in the tabulation below: Assessment Year Within Years Expiry of Limitation read with TOLA for (2) (3) Within Six Years (4) Expiry of Limitation read with TOLA for (4) (5) 2013-2014 31.03.2017 TOLA not applicable. 31.03.2020 30.06.2021 2014-2015 31.03.2018 TOLA not applicable. 31.03.2021 30.06.2021 2015-2016 31.03.2019 TOLA not applicable. 31.03.2022 TOLA not applicable. 2016-2017 31.03.2020 TOLA not applicable. 31.03.2023 TOLA not applicable. 2017-2018 31.03.2021 TOLA not applicable. 31.03.2024 TOLA not applicable. (f) The Revenue concedes that for the assessment year 20152016, all notices issued on or after April 1, 2021 will have to be dropped as they will not fall for completion during the period prescribed under the Taxation and other Laws (Relaxation and Amendme ..... X X X X Extracts X X X X X X X X Extracts X X X X
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