Gaurang Manhar Gandhi v. Asstt. CIT

Case Laws Analysis
REFERRED Aroni Commercials Ltd. v. Dy. CIT & Anr. 2014 TaxPub(DT) 1649 (Bom-HC)

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The Tax Publishers2024 TaxPub(DT) 1180 (Bom-HC) IN THE BOMBAY HIGH COURT K.R. SHRIRAM & NEELA GOKHALE, JJ. Gaurang Manhar Gandhi v. Asstt. CIT Writ Petition No. 2058 of 2022 4 March, 2024 Petitioner by: P.J. Pardiwalla, Senior Advocate, Jeet Kamdar, & Sameer Dalal. Respondents-Revenue by: Akhileshwar Sharma. ORAL JUDGMENT: *K.R. Shriram, J.* 1. Petitioner, an individual, works for salaries/remuneration with one Pioneer Investcorp Ltd. and Pioneer Insurance & Reinsurance Brokers Private Ltd. Petitioner also used to engage in the business of trading/investments in shares and securities. For assessment year (AY) 2014-15, Petitioner filed his return of income (ROI) on 24-7-2014 declaring a total income of Rs. 88,13,470. The ROI was initially processed under section 143(1) of the Income Tax Act, 1961 (the IT Act). 2. Petitioners case was selected for scrutiny and Petitioner received a notice dated 28-8-2015 under section 143(2) of the Act. Thereafter, respondent no. 1 issued a notice dated 18-2-2016 under section 142(1) of the Act calling upon Petitioner to provide various details/documents including details of long-term capital gains on sale of shares and short-term capital gain of office premises. Petitioner, vide a Letter dated 24-2-2016, provided all the documents called for. By another letter dated 10-3-2016, Petitioner provided further details. In the letter dated 10-3-2016, Petitioner specifically provided details of the transactions reported in Bombay Stock Exchange for contracts of Rs. 10,00,000 and above. Petitioner made specific disclosure about transactions pertaining to sale of shares in Sunrise Asian Limited (SAL). 3. Subsequently, an assessment Order dated 26-4-2016 came to be passed under section 143(3) of the Act in which it is expressly mentioned that the case was selected for scrutiny under CASS scrutiny, notices under section 142(1) of the Act was issued and served on Petitioner and Petitioner not only attended the case from time to time but also furnished the details called for. The assessment order also discusses about long-term capital loss, short-term capital loss, etc. which were carried forward. We should note that in the computation of total income filed by Petitioner, Petitioner disclosed long-term capital gain on sale of shares of Rs. 6,44,61,215. Petitioner also gave the details of gain on sale of investments/shares/long-term and disclosed that he had purchased and sold a quantity of Rs. 1,33,439 equity shares of SAL. The cost price is disclosed as Rs. 26,68,780 and the sale price is disclosed as Rs. 6,71,29,994.58 and gain of Rs. 6,44,61,214.58 is also disclosed. 4. Following the introduction of Chapter-IX dealing with Income Declaration Scheme, 2016 (IDS, 2016) by the Finance Act, 2016, which came into effect from 1-6-2016 till 30-9-2016, Petitioner, to get peace of mind, decided to take advantage of the IDS, 2016 and filed a declaration under section 183 of the Finance Act, 2016. Petitioner declared an amount of Rs. 6,84,61,220 which consisted of Rs. 6,44,61,215 pertaining to long-term capital gains on shares of SAL and Rs. 40,00,000 pertaining to cash income. Petitioners declaration was accepted pursuant to which Petitioner paid the amounts payable under the Finance Act, 2016 and Petitioner was also issued a certificate of declaration under section 183 of the Finance Act, 2016. SUBSCRIBE FOR FULL CONTENT

The Tax Publishers2024 TaxPub(DT) 1180 (Bom-HC)

IN THE BOMBAY HIGH COURT

K.R. SHRIRAM & NEELA GOKHALE, JJ.

Gaurang Manhar Gandhi v. Asstt. CIT

Writ Petition No. 2058 of 2022

4 March, 2024

Petitioner by: P.J. Pardiwalla, Senior Advocate, Jeet Kamdar, & Sameer Dalal.

Respondents-Revenue by: Akhileshwar Sharma.

ORAL JUDGMENT:

K.R. Shriram, J.

1. Petitioner, an individual, works for salaries/remuneration with one Pioneer Investcorp Ltd. and Pioneer Insurance & Reinsurance Brokers Private Ltd. Petitioner also used to engage in the business of trading/investments in shares and securities. For assessment year (AY) 2014-15, Petitioner filed his return of income (ROI) on 24-7-2014 declaring a total income of Rs. 88,13,470. The ROI was initially processed under section 143(1) of the Income Tax Act, 1961 (the IT Act).

2. Petitioners case was selected for scrutiny and Petitioner received a notice dated 28-8-2015 under section 143(2) of the Act. Thereafter, respondent no. 1 issued a notice dated 18-2-2016 under section 142(1) of the Act calling upon Petitioner to provide various details/documents including details of long-term capital gains on sale of shares and short-term capital gain of office premises. Petitioner, vide a Letter dated 24-2-2016, provided all the documents called for. By another letter dated 10-3-2016, Petitioner provided further details. In the letter dated 10-3-2016, Petitioner specifically provided details of the transactions reported in Bombay Stock Exchange for contracts of Rs. 10,00,000 and above. Petitioner made specific disclosure about transactions pertaining to sale of shares in Sunrise Asian Limited (SAL).

3. Subsequently, an assessment Order dated 26-4-2016 came to be passed under section 143(3) of the Act in which it is expressly mentioned that the case was selected for scrutiny under CASS scrutiny, notices under section 142(1) of the Act was issued and served on Petitioner and Petitioner not only attended the case from time to time but also furnished the details called for. The assessment order also discusses about long-term capital loss, short-term capital loss, etc. which were carried forward. We should note that in the computation of total income filed by Petitioner, Petitioner disclosed long-term capital gain on sale of shares of Rs. 6,44,61,215. Petitioner also gave the details of gain on sale of investments/shares/long-term and disclosed that he had purchased and sold a quantity of Rs. 1,33,439 equity shares of SAL. The cost price is disclosed as Rs. 26,68,780 and the sale price is disclosed as Rs. 6,71,29,994.58 and gain of Rs. 6,44,61,214.58 is also disclosed.

4. Following the introduction of Chapter-IX dealing with Income Declaration Scheme, 2016 (IDS, 2016) by the Finance Act, 2016, which came into effect from 1-6-2016 till 30-9-2016, Petitioner, to get peace of mind, decided to take advantage of the IDS, 2016 and filed a declaration under section 183 of the Finance Act, 2016. Petitioner declared an amount of Rs. 6,84,61,220 which consisted of Rs. 6,44,61,215 pertaining to long-term capital gains on shares of SAL and Rs. 40,00,000 pertaining to cash income. Petitioners declaration was accepted pursuant to which Petitioner paid the amounts payable under the Finance Act, 2016 and Petitioner was also issued a certificate of declaration under section 183 of the Finance Act, 2016.