2018 (5) TMI 1492

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.... assessment year 2015-16 disclosing nil income. During the relevant year, the petitioner has received in the form of share premium a sum of Rs. 2,13,92,000/- on allotment of shares of face value of Rs. 100/- each at a premium of Rs. 291/- per share. The return filed by the petitioner was taken up for limited scrutiny and the petitioner was issued Ext.P1 notice under Section 143(2) of the Act. In terms of Ext.P1 notice, the petitioner was informed that the issue identified for scrutiny is whether the funds received by the petitioner in the form of share premium are from disclosed sources and whether the same have been correctly offered for tax. In response to Ext.P1 notice, the petitioner submitted Ext.P2 reply stating that the funds receive....

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.... funds received in the form of share premium by the petitioner are from disclosed sources and whether the same have been correctly offered for tax. According to the learned counsel, the assessing officer, in the circumstances, cannot examine any other issue in the matter of completing the assessment without the approval of the Principal Commissioner of Income Tax. It is pointed out by the learned counsel for the petitioner that the assessment now made under Section 56(2)(viib) of the Act in terms of the impugned order is beyond the scope of the issue identified for examination in terms of Ext.P1 notice and against the directions issued by the Central Board of Direct Taxes as per Exts.P7 to P9 circulars and hence without jurisdiction as the ....

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.... issue whether the funds received by a company in the form of share premium have been correctly offered for tax has to be determined and assessed in accordance with the said provision. As noted above, the issue identified for examination in the case of the petitioner as mentioned in Ext.P1 notice reads thus : "Whether the funds received in the form of share premium are from disclosed sources and have been correctly offered for tax." The aforesaid issue consists of two parts, (i) whether the funds received in the form of share premium are from disclosed sources and (ii) whether the same have been correctly offered for tax. According to me, the issue as to whether the funds received by the assessee in the form of share premium have been c....