TaxTMI 
TaxTMI 
2014 (2) TMI 660
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....ing to reopen the assessment for assessment year 2007-08. 3) Brief facts leading to this petition are : a) The petitioner is engaged in the business of shares and stock brokers. On 30 October 2007 the petitioner filed its return of income for assessment year 2007-08 declaring its income at Rs.62.92 lacs. The Assessing Officer on 30 November 2009 completed the assessment under Section 143(3) of the Act arriving at total income of Rs.65.12 lacs. b) On 28 September 2012, the Assessing Officer issued a notice under Section 148 of the Act to the petitioner seeking to reopen the petitioner's assessment for assessment year 2007-08 on a reasonable belief that the income chargeable to tax has escaped assessment within the meaning of Section....
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....heir family members shows huge amount of transfer of funds to company and vice versa. The assessee in the B/s shows the balance receivable/ payable to the company due to these transaction under the head of Margin Money. However the nature of share transaction executed by these family members reveals that there family members does not require to kept margin Money with the Company. Further the verification of Bank A/c of directors and their family member reveals that amount of Rs.11987479/was deposited in their Bank accounts during the F.Y. 2006-07 relevant to A. Y. 2007-08 by cash. Out of Rs.11987479/, an amount of Rs.11942900/was transferred to the assessee by cheques. The assessee is not reporting these transaction in the financial stateme....
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....orm 3CD loans taken and repayment thereof by describing them as not applicable was not sustainable. This is so as the same applies only where amounts received or paid in cash is in excess of the limits specified under Section 269SS and 269T of the Act which was not so in this case. Besides the balance sheet did disclose the money received by the company under the head margin money as the same was in fact taken in the course of petitioner's business as share broker. The petitioner made no distinction between the family members and its constituent/customers placing orders upon it. So far as the amount of Rs.1.19 crores which was received by cheque by the petitioner from its directors and their family members was concerned, the petitioner resp....
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.... the following:- (i) The response of "Not applicable" in column 24(a) and (b) of Form 3CD was correct disclosure. The column 24(a) and (b) of Form 3CD in the context of taking of loans/deposits or repayment of loan/deposits exceeding the specified limits provided under Section 269 SS and 269T of the Act for being visted with penalty. The columns were not applicable to the petitioner's case; (ii) The margin money received by it from its Directors and their family members have in fact been disclosed in its financial statement as reflected in Schedule 8 appended to the balance sheet for the year ending 31 March 2007; and (iii) So far as the loan of Rs.1,19,42,900/received by the petitioners from its directors and their family members ....
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.... calls an undisclosed loan was in fact margin money and reflected as part of Schedule 8 to the balance sheet. It is being urged for the first time in the petition. The response in the petitioner's objections to the above ground is that it is not required to furnish details of the accounts of its directors and their family members in its return of income. Therefore, it was submitted that the aforesaid reason for reopening an assessment has gone unchallenged before the Assessing Officer. In the circumstances, the Assessing Officer was correct in rejecting the petitioner's objection for reopening the assessment for assessment year 2007-08. 7) We have considered the rival contentions. The notice dated 28 September 2012 seeks to reopen assess....
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....or reopening the assessment, the same test would be applicable in case of an assessee i.e. it must stand or fall by its objection to the grounds for reopening of assessment. It is not open to the assessee to urge fresh objections before the Court which the Assessing Officer had no occasion to deal with, unless of course the notice to reopen is exfacie without jurisdiction not requiring consideration of any argument such as beyond limitation. In view of the above, we find substance in the submissions on behalf of the revenue that the Assessing Officer had tangible material to come to prima facie view that income chargeable to tax has escaped assessment. 8) It is very likely that during the course of reassessment proceeding the petitioner ....