ASHOK MITTAL Vs. ASSISTANT COMMISSIONER OF INCOME-TAX

JUDGEMENT

(1.) THE petitioner has filed the present petition impugning the notice dated 29.03.2012 under Section 1 48 of the Income Tax Act, 1961 (hereinafter referred to as "the Act") seeking to reopen the assessment for the year 2005 -06 and also the order dated 28.01.2013 dismissing the objections filed by the petitioner. The proceedings relate to the Assessment Year 2005 ­ 06.

(2.) THE petitioner is an individual and as a sole proprietor of M/s Ashok Mittal and Co. was engaged in the business of dealing in shares, investment s, loans and finance. For the previous year relevant to the Assessment Year 2005 ­ 06, the petition er filed return of income declaring income of Rs.37,05,180/ -. Vide order dated 28.12.2007, the assessment was framed under Section 143(3) post scrutiny at Rs.45,01,520/ -.

(3.) ,40,000 shares of M/s MRP Limited at a cost of Rs.20.09, instead of purchase price of Rs.22.10. 4. The petitioner was asked and responded to the audit objections and alleged inaccuracies resulting in underassessment. The petitioner contended that the audit objections qua valuation of shares were not valid as the petitioner had valued the shares in terms of Accounting Standard -13 (AS ­ 13), which prescribes lower of cost or fair value as the method for valuation of shares/securities. As regards the valuation of shares of MRP Limited at below the purchase price, the petitioner contended that there was a typographical mistake wherein 4,00,000 shares had been inadvertently mentioned as 4,40,000 shares.