TaxTMI 
TaxTMI 
2009 (5) TMI 612
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....velopment and export of information technology related software solutions, had during the relevant previous year claimed exemption of Rs. 65,75,677 under section 10A of the Act. Assessment was completed under section 143(3) and the Assessing Officer allowed the claim. However, CIT for a reasoning that the Assessing Officer had not examined the assessee's claim of deduction under section 10A of the Act properly, issued notice under section 10A of the Act. According to the CIT, there was a change in ownership or the beneficial interest in the assessee-company during the relevant previous year thereby depriving it the benefit of deduction under section 10A of the Act. In reply to the notice, assessee contended that there was no change in the o....
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....uired 7,000 shares in the assessee-company as a nominee of ebyz.com.LLC. According to the learned CIT, the shareholding pattern during the relevant previous year had changed as under : (TABLE 'B') Shareholding as on 31st March, 2000 Sl. No. Name No. of shares of Rs. 10 each Paid-up value (Rs.) % of Holding 1. Ashish Vibhakar 7,000 70,000 77.78 2. Jayesh N. Dalal Family & Assoc. 2,000 20,000 22.22 TOTAL 9,000 90,000 100.00 Shareholding as on 31st March, 2001 Sl. No. Name No. of shares of Rs. 10 each Paid-up value (Rs.) % of Holding 1. EBYZ.Com.LLC 21,00,000 2,10,00,000 77.52 2. Ashish V. Vibhakar 7,000 70,000 0.26 3. ....
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....ed 30-3-2000 clearly mentioned that the beneficial interest in 7,000 equity shares was with Ebyz.com.LLC and Form No. III being the form of return to be filed with the Registrar, pursuant to section 187C(4) of the Companies Act, 1956 placed at paper book page 8, was also referred in support of his contention that the shares held by Shri Ashish Vibhakar was only as nominee of ebyz.com.LLC. Therefore, according to him, it was, thus, clear that there was no change in the shareholding pattern. Further, it was contended that increase in equity shares during the relevant previous year was in the same proportion and, therefore, the percentage of holding in between the shareholders remained to the same. It was, therefore, stressed that there was no....
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.... is so, Table 'A' as reproduced at para 2 above would be correct. Assessee's contention is that it had filed Return in Form No. III dated 8-4-2000 with the Registrar of Companies whereby it was declared that the beneficial interest in 7,000 shares held by Shri Ashish Vibhakar was with M/s. Ebyz.com.LLC. Learned CIT rejected the declaration filed by Shri Ashish Vibhakar with the assessee-company in Form No. 1 (paper book page 6) as a self-serving document. He has also not made any cross-verification with M/s. Ebyz.com.LLC in order to confirm whether initial 7,000 equity shares taken by Shri Ashish Vibhakar was on their behalf as mentioned in the letter of Shri Ashish Vibhakar addressed to M/s. Microcell Graphics Pvt. Ltd., (placed at page 4 ....
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....m and containing such particulars as may be prescribed. (4) Notwithstanding anything contained in section 153 where any declaration referred to in sub-section (1), sub-section (2) or sub-section (3) is made to a company, the company shall make a note of such declaration, in its register of members and shall file, within thirty days from the date of receipt of the declaration by it, a return in the prescribed form with the registrar with regard to such declaration. (5) (a) If any person, being required by the provisions of sub-section (1), sub-section (2) or sub-section (3), to make a declaration, fails without any reasonable excuse, to do so, he shall be punishable with fine which may extend to one thousand rupees for every day during....
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.... done as an afterthought or whether it was done in due course of business. If such Form No. III was indeed filed within the due period, no doubt assessee's claim has to be allowed. Neither the Assessing Officer nor the CIT has examined this aspect of the claim. Therefore, the learned CIT could not have come to a conclusion regarding the beneficial holding of shares by M/s. Ebyz.com.LLC without verifying the facts relating to filing of Form No. III. Hence, in the interest of justice we set aside the order of the learned CIT and remit the matter back to him for verifying whether the assessee had filed Form No. III placed at paper book page 8 before the Registrar of Companies within the period allowed under sub-section (3) of section 187C of t....