TaxTMI 
TaxTMI 
TaxTMI 
2016 (7) TMI 176
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....d in the business of imports and trading of bullions. For the assessment year 2009-10, the petitioner had filed a return of income on 5.9.2009 disclosing income of Rs. 4.43 crores (rounded off). Revised return was filed on 31.3.2011 of revised income of Rs. 2.54 crores (rounded off). The return of the company was taken in scrutiny. The Assessing Officer framed the scrutiny assessment under section 143(3) of the Income Tax Act, 1961 ("the Act" for short) on 30.12.2011. During such assessment, he noticed that the assessee had received share premium of Rs. 1.45 crores (rounded off) upon allotment of a total 16200 shares to five different persons. The Assessing Officer did not make any adjustment in the order of assessment concerning the share ....
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..../- chargeable to tax has escaped assessment by the reason of failure on the part of the assessee to disclose fully and truly all material facts within the meaning of section 147 of the I.T.Act, 1961. 4. In order to bring to tax above mentioned escaped income, as well as any other income which may have escaped assessment, found during the course of proceedings, notice under section 148 is issued." 3. Upon receipt of reasons, the petitioner represented to the Assessing Officer on 27.1.2015 and pointed out as under: "3. Company has allotted 16200 shares on 31.3.2009 @ Rs. 1000/- including share premium Rs. 900/- per share. Total premium of Rs. 1,45,80,000/-(16200 shares * Rs. 900/- each shares) 4. We herewith give the working of book value....
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....hich is not permissible in law. 6. On the other hand, learned counsel Shri Nitin Mehta for the department submitted that the Assessing Officer has recorded proper reasons for issuing notice for re-opening. During the assessment proceeding, the assessee had not disclosed true and full facts. These aspects were noticed by the Assessing Officer upon information being supplied from CCIT, Mumbai under letter dated 18.3.2014. He therefore, submitted that the notice for re-opening was validly issued. 7. From the record, we notice that alongwith the return, the petitioner had filed audited accounts which included the balance-sheet in which following disclosures were made: Balance sheet as on 31st March, 2009 Particulars Schedule No. 31.3.2009....
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....PP3367F 3000 3000000 5 Suchit Chandrakant Patel A/3, Sardar Patel society, Nehru road, Vile Parle (East), Mumbai 400057 AJTPP1790L 3700 3700000 16200 16,200,000.00 Annexure -8 :Details of share premium Sr. No. Name of allottee Address PAN No. No.of share Premiu m Amount 1 Chandrakant N Patel A/3, Sardar Patel Society, Nehru Road, Vile Parle (East), Mumbai- 400057 AABPP9011D 3500 900 3150000 2 Varsha Mahesh Patel B/8, Sardar Patel society,Nehru Road, Vile Parle (East), Mumbai 400057 AGVPP2093B 3000 900 2700000 3 Manish Chjandrakant Patel A/3, Sardar Patel society, Nehru Road, Vile Parle (East), Mumbai 400057 AGVPP3740K 3000 900 2700000 4 Yash Mahesh Patel B/8, ....
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....red to some information received from CCIT, Mumbai as per which the assessee company had allotted shares at a high premium. Barring this statement, we notice no further reference to this information in the reasons recorded. The contents of such information thus are completely unknown. Further the Assessing Officer then goes on to observe that on verification of the balance-sheet of the company, it was noticed that the company had received share premium of Rs. 1.45 crores and there is increase in share premium during the year under consideration. He therefore, recorded "the assessee has not explained the nature of such credit and has failed to prove the genuineness and justification of huge share premium received in its books of accounts. He....