PCIT Vs Fountain Vanijya Pvt Limited (Calcutta High Court)
In the case of PCIT Vs Fountain Vanijya Pvt Ltd, the Calcutta High Court addressed an appeal challenging the ITAT’s decision to invalidate a reassessment under the Income Tax Act. The revenue argued that the ITAT wrongly quashed the reopening of the assessment for the assessment year 2012-13, which was based on the alleged bogus long-term capital gains from the sale of penny stocks. The revenue contended that the gains, amounting to ₹88,73,135 from Aagam Capital Limited, were not genuine and that the Assessing Officer correctly reopened the assessment to include these proceeds. However, the ITAT found that the transaction had already been disclosed in the assessee’s tax return, rendering the reassessment grounds invalid. The High Court upheld the ITAT’s decision, noting that the reopening was based on incorrect facts and that the Tribunal’s conclusion was supported by previous case law and legal precedents. Therefore, the appeal was dismissed, affirming the Tribunal’s stance on the invalidity of the reassessment.
FULL TEXT OF THE JUDGMENT/ORDER OF CALCUTTA HIGH COURT
This appeal filed by the revenue under Section 260A of the Income Tax Act, 1961 (the Act) is directed against the order dated September 12, 2023 passed by the Income Tax Appellate Tribunal “A” Bench , Kolkata in I.T.A. No. 400/Kol/2023 for the assessment year 2012-13.
