Pooja Oberoi Vs DCIT (ITAT Mumbai)
Justice over technicalities – ITAT Mumbai sends back bogus share gain case for fresh hearing- Reasons for reopening must be furnished – Assessee gets another chance- Reassessment in alleged bogus share transactions restored : Non-Supply of Reasons & Pandemic delay entitle assessee to fresh opportunity; Penalty u/s 271AAC Quashed
In a recent ruling, the Mumbai ITAT delivered significant relief to assessee in respect of reassessment proceedings initiated on alleged bogus share transactions. Assessee had originally filed her return declaring an income of Rs 24.62 lakh. Subsequently, based on information from the Investigation Wing alleging that she had engaged in trading of shares of a paper entity & received sale consideration of Rs 6.79 crore, AO issued notice u/s 148 on 30.03.2021. As Assessee failed to file a return in response & also did not comply with statutory notices u/s 142(1), AO proceeded to frame a best judgment assessment u/s 147 read with sections 144 & 144B, making an addition of the entire share sale consideration & assessing total income at Rs 7.04 crore.
Assessee carried the matter before CIT(A), challenging both the validity of reopening as well as the merits. Additional evidences such as computation of income, balance sheet, income & expenditure account & market statements were also furnished. However, CIT(A) dismissed the appeal, upholding the reopening as well as the addition.
