The Supreme Court has allowed the application seeking exemption in filing a verified copy of the Income Tax Appellate Tribunal Order (ITAT) wherein it was held that the reassessment order is Invalid as a Mismatch in Reason Recorded in Reopening and Reason Supplied to the assessee. The Special Leave Petition (SLP) arose out of the impugned final judgment and order passed by the High Court of Orissa.
Binay Kumar Jindal HUF, the Assessee filed its return of income after claiming Long Term Capital Gains (LTCG) under Section 10(38) of the Act. The AO, i.e., the Income Tax Officer gathered information that the Assessee had shown the LTCG out of the share transaction of a Kolkata-based company, M/s. Tuni Textile Mills Ltd. (TTML) and that the price of such shares had increased by more than 768% from the cost of acquisition within a span of a little more than one year.
Alleging that the Assessee had taken an accommodation entry in the form of bogus LTCG and that TTML was a sham company, the AO reopened the assessment by issuing notice dated 30th March 2018 to the Assessee under Section 148 of the Act.
The ITAT on appeal observed that the reassessment proceedings were themselves invalid since the reasons recorded in the file for reopening and the reasons supplied to the Assessee were different. In response, it was sought to be contended on behalf of the Revenue before the ITAT that the validity of the re-assessment order cannot be challenged by the Assessee in an appeal filed by it against the revisional order under Section 263 of the Act.
A two-judge bench of Justice Abhay S Oka and Justice Pankaj Mithal allowed the application seeking exemption from filing a certified copy of the impugned order.
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