UMANG DHANUKA,KOLKATA vs. DCIT, CIRCLE-32, KOLKATA

The only issue pressed by the Counsel of the assessee at the time hearing is against the order of ld. CIT (A) upholding the reopening of assessment u/s 147 read with section 148 of the Act, which is invalid and void ab initio.

The facts in brief are that the assessee filed the return of income on 30.07.2012, declaring total income at ₹58,95,471/-. The return was processed u/s 143(1) of the Act. Thereafter, the case of the assessee was reopened u/s 147 of the Act by issuing

In the appellate proceedings, the order of the ld. AO was affirmed by the ld. CIT (A).

After hearing the rival contentions and perusing the materials available on record, we find that the case of the assessee was reopened u/s 147 of the Act by issuing notice u/s 148 of the Act on 30.03.2019, after the ld. AO received information from PDIT (Investigation), Mumbai dated 28.03.2019 that assessee has claimed an amount of ₹96,45,354/- as exempt u/s 10(38) of the Act which the assessee has received from sale of shares of BMS Industries Limited. We note from the rival contentions and from the records as placed before us, that assessee has not claimed any exemption of ₹96,45,354/- u/s 10(38) of the Act in respect of long term capital gain on sale of shares of BMS Industries Ltd. We note that the assessee has undisputedly sold during the year

In the result, the appeal of the assessee is allowed.