Assessee had traded in shares of two companies, namely, India Infotech and Software latd (IISL)\u00a0 and SRK industries Ltd (SRK).\u00a0\u00a0 An information was received by Assessing Officer from Investigation Wing that shares of IISL was a penny stock and it was being rigged to provide bogus accommodation entry to beneficiaries.\u00a0 Assessing Officer found that SRK was flagged as one of BSE listed penny stock companies in Investigation Report circulated from Principle DIT (Inv.). On basis of same, a reopening notice was issued on ground that assessee had claimed bogus short-term capital loss on penny stocks to evade tax liability. On writ the Court held that information on basis of which reassessment notice was issued was general in nature and did not point towards involvement of assessee in arrangement of providing accommodation entry by contriving bogus short-term capital loss. Further, there was nothing to show that information produced above was applicable to assessee.\u00a0 Materials based on which said report was prepared had also not been placed on record by revenue.Conclusion arrived at by Assessing Officer was based on suspicion created by information that shares of IISL and SRK were penny stocks. On facts\u00a0\u00a0 reassessment notice\u00a0 and order disposing the objection was quashed and set aside. \u00a0(AY. 2014-15)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 147 : Reassessment-With in four years-Cash credits-Penny stock-Accommodation entries-General information-India Infotech and Software ltd-SRK industries Ltd-Capital gains-Capital loss-Materials based on which said report was prepared had also not been placed on record by revenue-Conclusion arrived at by Assessing Officer was based on suspicion created by information that shares of IISL and SRK were penny stocks. On facts reassessment notice and order disposing the objection was quashed and set aside. [S. 45, 68, 148, 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-59292","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-fqk","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/59292","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=59292"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/59292\/revisions"}],"predecessor-version":[{"id":59293,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/59292\/revisions\/59293"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=59292"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=59292"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=59292"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}