- (1.) HEARD Sri Shambhoo Chopra, the learned counsel for the appellants and Sri Rahul Agrawal, the learned counsel for the assessee.
(2.) THE assessee had claimed long term capital gains of Rs. 14,78,214/ - on sale of shares of G.K.C.L. Out of the total amount of Rs. 14,78,214/ - it was alleged that an entry of Rs. 4,49,214 was credited in the account of the assessee on 7.4.1998 which was cleared on 12.4.1998. The assessing officer found reasons to believe that the claim of long term capital gains pertaining to the Assessment Year 1999 -2000 was a bogus entry and accordingly reopened the case U/s 148 for the Assessment Year 1998 -1999 and 1999 -2000.
(3.) THE present appeal relates to the Assessment Year 1998 -1999. The reasons recorded for reassessment U/s 147 read with 148 is as under: "Apart from the above the assessee has also shown receipt of sales proceeds of the shares of G.K.C.L. (the same share of which sales proceeds of Rs. 4,99,214/ - mentioned above) as under: Rs. 6,00,000 on 20.08.1998 Rs. 3,79,000 on 20.08.1998 The fictitious entry of long term capital gain as mentioned above has been introduced by the assessee in his books of accounts claiming that it represents the sale proceeds of the shares as mentioned above. The unaccounted for money generated by the assessee has been introduced in the garb of sale proceeds of the aforesaid share. In a large number of assessee it is found that they have surrendered the entries and paid taxes also before the respective officers of their jurisdiction. Therefore, I have reason to believe that the income to the tune of amount which represents sale proceeds of shares is actually the assessee's unaccounted money from undisclosed sources. This has escapted assessment. Therefore, this is a case where income has escaped assessment under the provisions of section 147 and issue of notice u/s 148 of the I.T. Act is warranted. Hence, I have reason to believe that the above income of Rs. 14,78,214/ - has escaped assessment within the meaning of section 147 of the I.T. Act, 1961. Therefore, action U/s 147 is to be taken for which proposal for obtaining approval of the CIT -I, Agra is being sent U/s 151(1) before issuing U/s 148 of the I.T. Act, 1961" The assessee questioned the validity of the notice and proceedings initiated U/s 147 read with 148 of the Income Tax Act in the assessment proceedings. The Assessing Officer did not consider the validity of the proceedings initiated and found that the entries were bogus and added the amount as undisclosed income in the assessment year in question.;