Vinod Kumar Sibal v. Assistant Commissioner Of Income Taxcircle And 3

Heard Sri Suyash Agarwal, learned counsel for the petitioner and Sri Ashish Agarwal, learned standing counsel for the respondents - Income Tax Department. This writ petition has been filed praying to quash the notice dated 31.03.2021 under Section 148 of the Income Tax Act, 1961 issued to the petitioner for the Assessment Year 2014-15 and the order dated 24.01.2022 passed by the respondent No.3 rejecting the objections of the petitioner. Learned counsel for the petitioner submits that the investigation was being made by Deputy Director of Income Tax (Inv.)-1), Unit-1, NOIDA and summons were issued, therefore, it cannot be said that the matter with regard to bogus Long Term Capital Gain was not within the knowledge of the department. He, therefore, submits that there was no fresh material before the department to initiate proceedings under Section 148 of the Act, 1961. Sri Ashish Agarwal, learned counsel for the respondents - Department has supported the impugned notice and the order rejecting the objections. We have carefully considered the submissions of the learned counsels for the parties and we do not find any force in the submission of the learned counsel for the petitioner. Perusal of the reasons recorded by the Assessing Authority would show that the material with regard to bogus Long Term Capital Gain availed by the petitioner as exempt under Section 10(38) of the Act by the Assessment Year 2014-15, came to the hands of the Assessing Authority by way of investigation report which prima facie discloses that the petitioner has availed fictitious Long Term Capital Gain exemption under Section 10(38) for a sum of Rs.7,19,69,446/-, in respect of Penny Stock Scrip, i.e. M/s Shree Shaleen Textiles Ltd. Investigation being conducted by the Investigation Wing of the Income Tax Department cannot be said to be an automatic information to the Assessing Authority unless the information collected is communicated or passed on by the Investigation Wing to the concerned Assessing Authority. Under the circumstances, we do not find any illegality in the impugned notice under Section 148 of the Act. Consequently, the writ petition is dismissed. Order Date :- 24.3.2022 NLY YADAV Reason: Location: High Court of Judicature at Allahabad