Question And Answer
Subject: Clarification on escapement of income
Querist: Suresh Goyal
Answered by:
Tags: , , , ,
Date: July 1, 2023
Query asked by Suresh Goyal

An Assessee invested Rs.25 Lacs in Penny Stock in Oct 2015 & sold the same for Rs 65 Lakhs in Jan 2016. He showed STCG of Rs 40 Lacs in his ROI in A.Y 2016 -17 paid 15 % tax on STCG alongwith other income. Case was reopened, the AO made the addition Rs. 65 Lacs u/s 68 which he received from sale of shares. My question is whether the escaped income will be treated Rs.25 Lacs as assessee has already disclosed Rs.40 Lacs under STCG or Rs.65 Lacs as assessed by the AO. If it is Rs.25 Lacs then the case cannot be reopened under new section 149 as it is more than 3 years and amount of escaped income is less than Rs.50 Lacs. I request you to please give your views on this query.

File Uploaded: Not Available

The query is incomplete. We would have to understand if there is an allegation of an accommodation entry or an order of SEBI. Also, when were the reassessment proceedings initiated?

Disclaimer: This article is only for general information and is not intended to provide legal advice. Readers desiring legal advice should consult with an experienced professional to understand the current law and how it may apply to the facts of their case. Neither the author nor and its affiliates accepts any liabilities for any loss or damage of any kind arising out of any inaccurate or incomplete information in this article nor for any actions taken in reliance thereon. No part of this document should be distributed or copied (except for personal, non-commercial use) without express written permission of

Leave a Reply

Your email address will not be published. Required fields are marked *