Allowing the appeal the Tribunal held that the assessee had bought the shares in the initial public offer by making payments through cheque. The assessee held the shares for more than a year and sold it in the open market through a registered share broker for which securities transaction tax was paid. Corresponding reduction of shares had also been made from the assessee\u2019s dematerialised statement. Hence, the very basis of the formation of belief that income had escaped assessment is\u00a0 fallacious. The Assessing Officer had referred to the split-up of S\u2019s shares, which had happened in the year 2015 to allege mala fide motive on the part of the assessee. However, the assessee had actually sold the shares in June, 2014 itself much before the act of splitting up of the shares. Hence, the assessee\u2019s case did not fall under the modus operandi mentioned in the Assessing Officer\u2019s recorded reasons, which did not have live link to the formation of the belief of the Assessing Officer.\u00a0 The reopening made under section\u00a0147\u00a0was based on incorrect assumption of facts hence quashed.(AY.2015-16, 2017-18)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 147 : Reassessment-Long-term capital gains-Sale of shares-Information from Investigation Wing-accommodation entries-Demat-Sales through registered broker-Shares were sold before splitting up of shares-No link between reasons recorded and formation of belief-Reassessment is invalid.[S. 10(38) 45, 148] <\/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-52424","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-dDy","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/52424","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=52424"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/52424\/revisions"}],"predecessor-version":[{"id":52425,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/52424\/revisions\/52425"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=52424"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=52424"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=52424"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}