Case Law Details
Principal Commissioner of Income Tax Vs Badal Prakash Jinda (Orissa High Court)
Orissa High Court held that when original re-assessment order was not passed validly, subsequent revisional order passed by PCIT is held to be invalid.
Facts- Assessee filed its ROI for the AY 2013-14 after claiming Long Term Capital Gains (LTCG) u/s. 10(38) of the Act. AO gathered information that the Assessee had shown the LTCG out of the share transaction of a Kolkata based company, M/s. Tuni Textile Mills Ltd. (TTML) and that the price of such shares had increased by more than 768% from the cost of acquisition within a span of a little more than one year.
Alleging that the Assessee had taken an accommodation entry in the form of bogus LTCG and that TTML was a sham company, the AO reopened the assessment by issuing notice dated 30th March, 2018 to the Assessee u/s. 148 of the Act.
In response thereto, the Assessee filed a ROI this time offering the net consideration from the sale of shares for taxation under the head Short-Term Capital Gains (STCG) in lieu of LTCG shown in the original return. On this basis, the AO passed an assessment order u/s. 143 (3) read with Section 147 of the Act accepting the revised income as disclosed in the return and accordingly raising a demand. The Assessee accepted the above assessment order by not challenging it further in appeal.
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