TaxTMI 
TaxTMI 
TaxTMI 
2016 (8) TMI 513
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....office of the AO to the effect that since it is not a credit institution, it has not filed the return. It is the case of the petitioner that for the subsequent years also, for the same reasons, it has not filed the returns under the said Act and upto 2004 the department did not do anything in the direction of asking it to file return under the said Act. However, in the month of March, 2005, after a period of 10 years, petitioner was given a notice dated 09/03/2005 under Section 10 of the Interest Act for the assessment year 1995-96. 2.1 It is the case of the petitioner that in response to the said notice, petitioner vide letter dated 25/04/2005 requested the respondent to supply the reasons, if any, recorded by respondent. Reasons were supplied to the petitioner inter alia stating that the interest income of the petitioner from various financial activities and from those financial activities, three types of income viz., (01) finance charges of Rs. 70,02,169/( 02) bill discounting income of Rs. 6,47,67,934/and (03) interest on deposits/loans Rs. 2,82,26,110/making a total of Rs. 9,99,96,213/as income liable to the interest tax. 2.2 Thereafter, the petitioner had filed Special Civi....
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....e amalgamation/transfer shall take place. The scheme concerned herein does so provide viz. January 1, 1982. It is true that while sanctioning the scheme it is open to the Court to modify the said date and prescribe such date of amalgamation/transfer as it thinks appropriate in this facts and circumstances of the case. If the Court so specifies a date, there is little doubt that such date would be the date of amalgamation/date of transfer. But where the Court does not prescribe any specific date but merely sanctions the scheme presented to it as has happened in this case it should follow that the date of amalgamation/date of transfer is the date specified in the scheme as "the transfer date". It cannot be otherwise. It must be remembered that before applying to the Court under Section 391(1) a scheme has to be framed and such scheme has to contain a date of amalgamation/transfer. The proceedings before the Court may take sometime; indeed, they are bound to take some time because several steps provided by Sections 391 to 394A and the relevant Rules have to be followed and complied with. During the period the proceedings are pending before the Court, both the amalgamating units, i.e.,....
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....e Companies separately. There may be a certain practical difficulty in adopting this course inasmuch as separate balancesheets may not be available for the Transferor and Transferee Companies. But that may not be an insuperable problem inasmuch as assessment can always be made, on the available material, even without a balancesheet. In certain cases, bestjudgment assessment may also be resorted to. Be that as it may, we need not pursue this line of enquiry because it does not arise for consideration in these cases directly. 7. In view of the above concluded position of law, we have no hesitation in holding that the transferor company would no longer be amenable to assessment proceedings for the assessment year 2010-11. The notice for producing documents for such assessment would, therefore, be invalid. Reference of the Revenue to clause 6 of the scheme is wholly misplaced. Clause 6 refers to two dates, namely, appointed date and the effective date. It only clarifies that the scheme shall be operative from the appointed date, but shall become effective from the effective date. This, in our opinion, does not alter the position of law. The term appointed date as defined in clause 1(....
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....of 2015 (PCIT v. Images Credit and Portfolio Pvt. Ltd ), this Court held that the proceedings under Section 153C of the Act could not be initiated against an entity that had ceased to exist. 20. In view of the aforesaid, the contention that the impugned notices issued under Section 148 of the Act were invalid as having been issued to an Assessee that had ceased to exist, must be accepted. The impugned notices are, therefore, liable to be set aside on this ground alone. W.P. (C) Nos. 1289/1999, 1290/1999, 1291/1999, 1292/1999 & 1293/1999 Page 10 of 13 21. Having stated the above, we must also add that in our view, the impugned notices must also be set aside as the AO had no reason to believe that the income of the Assessee for the relevant assessment years had escaped assessment. Concededly, the AO had no tangible material in regard to any of the transactions pertaining to the relevant assessment years. Although the AO may have entertained a suspicion that the Assessee s income has escaped assessment, such ‟ suspicion could not form the basis of initiating proceedings under Section 147 of the Act. A reason to believe not reason to suspect is the precondition for exercise....
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....luding which were accepted by the AO after due scrutiny in AY 1990-91 and 1991-92 in respect of which the AO has no material are also sham transactions. Thus, the impugned notices under Section 148 are also liable to be set aside for the foresaid reason. 24. In view of our aforesaid conclusion, it is not necessary to examine whether the impugned notices were approved by the competent authority as required under the Act. W.P. (C) Nos. 1289/1999, 1290/1999, 1291/1999, 1292/1999 & 1293/1999 Page 12 of 13 25. Accordingly, the Petitions are allowed and the impugned notices are set aside. The interim order passed on 10th March, 2000 is made absolute. In the circumstances, the parties are left to bear their own costs." 3.6 The attention of the Court was also drawn to the meaning of "Credit Institution" which reads thus: "6. Incidentally, we may also invite your kind attention to the definition of the words "financial company" as given in Section 3(5B) of the Act which reads as under: "Financial Company" means a company, other than a company referred to in sub clause (1), (ii) or (iii) of clause (5A), being - i.*** ii.*** iv.*** v.*** (va). A residuary non banking company o....