Anju Daruka Vs ITO (ITAT Kolkata)
ITAT Kolkata held that reopening of assessment is invalid since reasons recorded are vague and scanty and PCIT has granted approval in mechanical manner. Accordingly, reopening of assessment is liable to be quashed.
Facts- The case of the assessee was reopened u/s 147 of the Act by issuing notice u/s 148 of the Act on 05.02.2019, after AO received information form DIT investigation, Kolkata that assessee is a beneficiary of accommodation entries of bogus long term capital gain. AO observed that the assessee has shown Long Term Capital Gain from sale of 6,400/- equity shares of M/s BSR Finance & Construction Ltd. to the tune of ₹11,87,522/-, which was claimed as exempt. The ld. AO also noted that the assessee has purchased 400 shares off market of M/s Sensitive Merchandise Private Limited in physical form of ₹1 lac vide cheque dated 22.02.2011. Thereafter, amalgamation happened with above said company with M/s BSR Finance & Construction Ltd. and assessee was allotted 6,400 equity shares. Thereafter, AO noted the modus operandi of how the price of the said share went up and finally AO treated the entire sale proceeds as bogus and added the same u/s 69A of the Act to the income of the assessee thereby making an addition of ₹12,68,923/- besides adding commission at the rate of 0.15% which comes to 1,903/-.
