NIKHIL KUMAR Vs. ASSISTANT COMMISSIONER

JUDGEMENT

(1.) The petitioner has sought to set aside the order dtd. 30/6/2022 passed by respondent No.1 under Sec. 148A(d) of the Income Tax Act, 1961 (for short 'the Act') rejecting the petitioner's objection to the initiation of assessment proceedings for the Assessment Year 2015-16. The petitioner has also sought for setting aside the notice at Annexure-E; the assessment order dtd. 25/5/2023 passed under Sec. 147 read with Sec. 144B of the Act at Annexure-K; the demand notice dtd. 25/5/2022 at Annexure-L and penalty notice at Annexure-M.

(2.) Sri. T.Suryanarayana, learned Senior Counsel appearing for the petitioner would submit that the assessment order at Annexure-K has made an addition of Rs.12,17,10,434.00 to the income of the assessee observing that the assessee has failed to furnish relevant documentary evidence as to why the aforesaid amount should not be added to his income. In the assessment order, it is observed that the transaction stated by the petitioner in the National Securities Exchange (NSE) has not been confirmed in light of the letter dtd. 27/3/2018. It is submitted that the dispute is of variation in respect of Rs.12,17,10,434.00, which has been treated as unexplained income and demand raised pertains to dealing with the securities on NSE of TD Power Systems Limited between the period 1/10/2014 to 31/10/2014.

(3.) Learned Senior Counsel appearing for the petitioner relies on the memo of production of documents dtd. 28/6/2023 and submits that the NSE in its correspondence dtd. 23/6/2023 has clarified that they sent a letter dtd. 5/7/2022 to the Income Tax Department providing clarification of their earlier letter dtd. 27/3/2018, while also sharing the requisite transaction details of the scrip 'TD Powers Systems Limited' during the period 1/10/2014 to 31/10/2014 in the capital market segment of exchange. Attention is also drawn to the letter dtd. 22/6/2023 reiterating the same position. Para-2 of the said communication reads as follows: