Allowing the petition the Court held that ,the Dept’s argument that though the assessee disclosed details of the transactions pertaining to purchase and sale of shares, it did not disclose the real colour / true character of the transactions and, therefore, did not make a full and true disclosure of all material facts which was also overlooked by the AO, is not correct. The assessee disclosed the primary facts to the AO & also explained the queries put by the AO. It cannot be said that the assessee did not disclose fully and truly all material facts necessary for the assessment. Reassessment notice is held to be bad in law . (WP. N0 2518 of 2019 dt 11-03 -2020) (AY.2012 -13 )
Gateway Leasing Pvt. Ltd v. ACIT ( 2020) 426 ITR 228 / 272 Taxman 255 / 194 DTR 57/ 317 CTR 9/ 272 Taxman 255(Bom) (HC) www.itatonline.org
S.147: Reassessment- After the expiry of four years- Bogus capital gains- Penny stocks- Information was received from the Investigation Wing of the Income Tax Department- The assessee disclosed the primary facts to the AO & also explained the queries put by the AO- It cannot be said that the assessee did not disclose fully and truly all material facts necessary for the assessment- Reassessment is held to be not valid [ S. 45 , 148 ]