Toral Hemanshubhai Shah v. Asst. CIT (2024) 300 Taxman 196 (Guj.)(HC)

S. 147 : Reassessment-After the expiry of four years-Unexplained money-Information from the ADIT (Investigation)-Purchases and sale of commodities through National Multi-Commodities Exchange (NMCE platform)-Borrowed satisfaction-Not valid in the eyes of law-Non application of mind-Reassessment notice and order disposing the objection is quashed.[S. 69A, 148, Art. 226]

Assessing Officer received information that assessee had made purchases and sale of commodities through NMCE platform, resulting in a profit. He held that assessee’s return of income did not reflect this profit, leading to belief that income had escaped assessment  Assessee contended  that reassessment was based on incorrect facts.  On writ allowing the petition the Court held the  profit is  already reflected in assessee’s records and bank statements. In such circumstances, it could be said that reasons so recorded and notice under section 148 is  nothing but a sheer non application of mind by revenue and therefore quashed and set aside. Relied on Kapdia Money Changers (P) Ltd v. ACIT (2019) 108 taxmann.com 275/ 266 Taxman 160 (Guj)(HC). (AY. 2012-13)

Leave a Reply

Your email address will not be published.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

*