Wtax/231/2022 Of Vinod Kumar Sibal v. Assistant Commissioner Of Income Taxcircle And 3 Others

Case :- WRIT TAX No. - 231 of 2022 Petitioner :- Vinod Kumar Sibal Respondent :- Assistant Commissioner Of Income Taxcircle And 3 OthersCounsel for Petitioner :- Suyash Agarwal,Divyanshu AgarwalCounsel for Respondent :- A.S.G.I.,Gaurav Mahajan Hon'ble Surya Prakash Kesarwani,J.Hon'ble Jayant Banerji,J. Heard Sri Suyash Agarwal, learned counsel for the petitioner and SriAshish Agarwal, learned standing counsel for the respondents - IncomeTax Department. This writ petition has been filed praying to quash the notice dated31.03.2021 under Section 148 of the Income Tax Act, 1961 issued to thepetitioner for the Assessment Year 2014-15 and the order dated 24.01.2022passed by the respondent No.3 rejecting the objections of the petitioner. Learned counsel for the petitioner submits that the investigation was beingmade by Deputy Director of Income Tax (Inv.)-1), Unit-1, NOIDA andsummons were issued, therefore, it cannot be said that the matter withregard to bogus Long Term Capital Gain was not within the knowledge ofthe department. He, therefore, submits that there was no fresh materialbefore the department to initiate proceedings under Section 148 of the Act,1961. Sri Ashish Agarwal, learned counsel for the respondents - Department hassupported the impugned notice and the order rejecting the objections. We have carefully considered the submissions of the learned counsels forthe parties and we do not find any force in the submission of the learnedcounsel for the petitioner. Perusal of the reasons recorded by the Assessing Authority would showthat the material with regard to bogus Long Term Capital Gain availed bythe petitioner as exempt under Section 10(38) of the Act by theAssessment Year 2014-15, came to the hands of the Assessing Authorityby way of investigation report which prima facie discloses that thepetitioner has availed fictitious Long Term Capital Gain exemption underSection 10(38) for a sum of Rs.7,19,69,446/-, in respect of Penny StockScrip, i.e. M/s Shree Shaleen Textiles Ltd. Investigation being conductedby the Investigation Wing of the Income Tax Department cannot be said tobe an automatic information to the Assessing Authority unless theinformation collected is communicated or passed on by the InvestigationWing to the concerned Assessing Authority. Under the circumstances, wedo not find any illegality in the impugned notice under Section 148 of theAct. Consequently, the writ petition is dismissed. Order Date :- 24.3.2022NLY