Subhaschandra Patel vs. Deputy Commissioner of Income Tax

Parties Involved

Facts Summary

The assessee, Subhaschandra Patel, filed his return of income on 10.10.2018 declaring total income at Rs.63,37,290/-. The assessee had booked Long Term Capital Gain (LTCG) of Rs.28,37,851/- from the sale of shares of Fiberweb India Ltd. The scrip of Fiberweb India Ltd. was identified for manipulation of trade by way of complex web of prearranged or artificial web of transactions. The case was reopened by issuing notice under section 148 of the Income Tax Act, 1961. The assessee filed a return of income on 18.04.2022 declaring total income at Rs.63,37,580/-. The Assessing Officer made additions in the order passed u/s. 147 r.w.s. 144B of the Act based on the information available on record. The assessee filed an appeal before the Commissioner of Income Tax (Appeals) which was dismissed. The assessee further appealed to the Income Tax Appellate Tribunal.…

Legal Issues

• 1. Validity of the AO's action of reopening notice u/s 148 of the Act and the consequent assessment order passed u/s 143(3) r.w.s 147 of the Act.
• 2. Taxing a sum of Rs.28,37,851 u/s 115BBE r.w.s. 68 of the Act.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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