Case Law Details
Naz Shazia Vs ITO (ITAT Delhi)
ITAT Delhi held that the reopening of assessment had been initiated by mere surmise and conjecture without having any cogent material to form a reasonable belief that income of the assessee had escaped assessment within the meaning of section 147 of the Income Tax Act.
Facts-
The assessee had filed the return of income for the Asst Year 2014-15 on 24.12.2014 declaring taxable income of Rs 9,34,420/-. This return was duly processed u/s 143(1) of the Act. No scrutiny assessment was framed by the revenue. AO received information from the Kolkata Investigation Wing stating that they had identified 84 scrips as penny stocks and that the prices had been artificially rigged up by certain entry operators. One such scrip out of 84 scrips was share of Kailash Auto Finance Ltd (KAFL) which assessee had purchased and sold. Hence the ld. AO alleged that assessee is also one of the beneficiaries of the artificially rigged up prices with the assistance of entry operators. Accordingly, a notice u/s 148 of the Act was issued to the assessee.
The assessee had challenged the validity of reopening of assessment u/s 147 of the Act in the instant case. The interconnected issue involved therein is as to whether the ld. CIT(A) was justified in confirming the addition made on account of unexplained money u/s 69A of the Act in the facts and circumstances of the case.
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