Law:

Section:

Section 148 of the Income-tax Act, 1961 - Income escaping assessment - Issue of notice for - Assessment year 2001-02 - Assessee showed sale of certain shares in his return of income for assessment year 2001-02 - On basis of said information, his assessment was completed - Subsequently, a notice under section 148 was issued to assessee - Assessee, by filing instant petition, challenged validity of said notice - It was stated in counter-affidavit filed by respondent that a search and seizure operation under section 132 was conducted by Investigation Wing of Department against some share brokers wherein it was revealed that assessee was involved in bogus transaction of shares with some brokers, and sale of shares shown by him in return of income was incorrect - Whether, in view of aforesaid information received from Investigation Wing of the Department, it could be concluded that respondent No. 1 had an honest and reasonable belief that assessee had concealed his income or that correct income of assessee had escaped assessment - Held, yes - Whether, in such circumstances, validity of notice issued under section 148 was to be affirmed - Held, yes FACTS The assessee in his return for assessment year 2001-02 showed sale of certain shares. The profits earned on sale of said shares were offered to tax as 'long-term capital gain'. On basis of aforesaid information, his assessment was completed. Subsequently, a notice under section 148 was issued to him. The assessee by filing petition challenged the validity of said notice. In the counter-affidavit filed by the respondent, it was stated that Investigation Wing of the Department conducted search and seizure operations under section 132 against some share brokers. It was revealed in said operation that the assessee was involved in bogus transactions of shares with some share brokers, and sale of shares shown by him in his return of income was incorrect. It was thus alleged by the respondents that in such circumstances, they had a reasonable ground to believe that income of the assessee had escaped assessment for which proceedings under section 148 were to be initiated. HELD From the facts stated in the counter-affidavit,…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492