Assessee-NRI, made an investment by purchasing certain equity shares of an Indian company through automatic route of FDI.\u00a0 Subsequently, he sold said shares as per valuation under section 56(2)(vii) to six different persons due to commercial reasons.\u00a0 Revenue issued a show-cause notice under section 148A seeking details from assessee with respect to his NRI identity and genuineness of transaction of sale of shares. Thereafter, an order under section 148A(d) was passed concluding that income chargeable to tax had escaped assessment. On writ the Court held that\u00a0 the\u00a0 assessee had furnished documentary evidences like passport, etc., for establishing that he was a non-resident Indian with a detailed reply and supporting documents. The order had been passed in complete disregard to details which were furnished by assessee, it was in breach of principles of natural justice. Accordingly\u00a0 the matter was\u00a0 sent back to concerned officer from stage where he committed serious error in not complying with statutory requirements. Accordingly the order passed under section 148A(d) was quashed and set-aside. (AY. 2015-16)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 148A: Reassessment-Conducting inquiry, providing opportunity before issue of notice-Non-Resident Indian-Investment in shares-Automatic route of FDI-Violation of principle of natural justice-Matter was sent back to concerned officer from stage where he committed serious error in not complying with statutory requirements-Order passed under section 148A(d) was quashed and set-aside. [S. 56(2)(vii), 148, 148A(b), 148A(d), Art. 226] <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-38245","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-9WR","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/38245","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=38245"}],"version-history":[{"count":2,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/38245\/revisions"}],"predecessor-version":[{"id":51619,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/38245\/revisions\/51619"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=38245"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=38245"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=38245"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}