- (1.) Heard Sri S.D. Singh, learned Counsel for the Petitioner and Sri R.K. Upadhyaya, learned standing counsel appearing on behalf of Respondent No. 2.
(2.) By means of the present writ petition, the Petitioner is challenging the 2 validity of notice under Section 148 of the Income Tax Act, 1961 (hereinafter referred to as "the Act") and initiation of the proceeding under Sections 147 of the Act for the assessment year 2001-02. The notice under Section 148 of the Act is dated 11-3-2006, admittedly issued beyond the period of four years. The period of four years expired on 31-3-2006.
(3.) The Petitioner was regularly filing returns in the status of individual. For the assessment year 2001-02, the Petitioner has filed the return on 31-3-2001, disclosing the total income of Rs. 13,30,910. Out of the total income disclosed, the Petitioner has disclosed a sum of Rs. 12,37,859 towards capital gain arising from the sale of 16,000 equity shares of M/s. Viraj Credit Capital Limited through M/s. J.R.D. Stock Brokers (P) Limited, Dariyaganj, New Delhi. During the course of assessment proceedings, a notice was issued by the assessing authority under Section 143(2)/142(1) of the Act asking the Petitioner to furnish the details relating to the bank account, purchase and sale of shares and certificate from the stock brokers. The same were produced by the Petitioner. On submission of those documents, the assessing authority has issued a letter dated 11-3-2004 to M/s. J.R.D. Stock Brokers Private Limited, Dariyaganj, New Delhi and after getting the said transactions verified, the claim of the Petitioner has been accepted, vide order dated 25-3-2004, which reads as follows: Return on total Income of Rs. 13,30,910 was filed on 31-10-2001. The same is processed under Section 143(1) on the returned income on 16-1-2003. In response to notice under Section 143(2)/142(1) Shri Kanchan Khanna CA, attended from time to time and submitted required details. The case was discussed with him. Details of bank accounts, evidence regarding purchase and sale of shares and certificates from stock broker were produced before me by the Assessee. During the year under consideration the Assessee has sold 16,000 of equity shares of M/s. Viraj Credit Capital Ltd. and has shown the capital gains of Rs. 12,34,006. Necessary evidence regarding this transaction was produced and was verified by me. Vide my letter dated March 11, 2004 to M/s. JRD Stock Brokers Pvt. Ltd., Darya Ganj, New Delhi. It was required from them to confirm the sale of shares of M/s. Viraj Credit Capital Ltd. M/s. JRD Stock Brokers Pvt. Ltd. vide their letter dated March 16, 2004, had confirmed that they have sold the 16,000 shares of M/s. Viraj Credit Capital Ltd. belonging to Smt. Raj Rani Gulati, Saresh Bagh, Kanpur and had made the payment through banking mode and in confirmation of this sale of shares and payment the broker has also enclosed a statement of accounts, which is open to verification. In the light of the above discussion the assessment is completed on the returned income at Rs. 13,30,910. Issue ND.;