Hemlata Harakchand Shah vs. Income Tax Officer

Parties Involved

Facts Summary

The reassessment proceedings were initiated against the assessee based on information indicating that she had engaged in share transactions aggregating to ₹13,32,916/- in the shares of M/s. Hemo Organics Limited, a penny stock company, during the relevant assessment year. The assessee had failed to file her return of income under Section 139(1) of the Act. Despite notices under Sections 148 and 142(1) of the Act, the assessee did not comply, leading to an ex-parte assessment under Section 144 of the Act. The CIT(Appeals) dismissed the appeal for statistical purposes due to non-compliance with Section 249(4) of the Act.…

Legal Issues

• 1. Whether the Ld. CIT(Appeals) erred in not admitting the appeal and confirming the order passed u/s. 144 r.w.s. 147 of the Act?
• 2. Whether the addition made by the Assessing Officer was substantiated?
• 3. Whether the assessee's total income should be determined after considering the actual sale value of shares?

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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