Case Law Details
Gulshan Investment Co. Ltd. Vs ITO (ITAT Delhi)
ITAT Delhi held that reassessment proceedings initiated u/s 147 of the Income Tax Act unsustainable as sufficient enquiry was made by AO on the impugned transaction and hence it tantamount to change of opinion on part of AO.
Facts- The assessee is a registered Non-Banking Finance Company (NBFC) and is engaged in the business of purchase and sale of shares, securities, commodities and mutual funds, trading in derivatives, future & option and also derivative of commodities in commodity exchanges.
AO after taking into consideration all the details and after due examination of details furnished by the assessee had framed the assessment u/s. 143(3) of the Act determining speculation loss and net speculation loss was arrived which was carried forward to next and also made disallowance u/s. 14A of the Income Tax Act.
Subsequently, based on information received from the Investigation Wing, Kolkata, according to which certain entities were identified to be involved in facilitating bogus loss or profit to other real beneficiaries based on Forward Marketing Commission (FMC) report that members of National Multi Commodity Exchange (NMCE) were found to be involved in creating artificial volume and suspected evasion of Income Tax, the AO initiated reassessment proceedings u/s. 147 of the Act alleging that the assessee company is one of the beneficiaries of accommodation entries has earned contrived profit of Rs. 1,79,21,950/-.
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