2018 (12) TMI 1349

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....018 for the Assessment Year 201112. Brief facts are as under: 4. The petitioner is a company registered under the Companies Act, 1956 and is engaged in the business of export of software and providing IT enabled services. For Assessment Year 2011-12, the petitioner had filed its return of income on 28.11.2011. 5. The return was taken in scrutiny by the Assessing Officer. The Assessing Officer passed an order of assessment under Section 143(3) of the Income Tax Act, 1961 ("the Act" for short) on 25.05.2015. In order to reopen such assessment, the Assessing Officer has issued the impugned notice. For issuing the notice, the Assessing Officer had recorded reasons, relevant portion of which reads as under : "The assessee is corporate e....

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....subsidiary company of First Source Solution Ltd and therefore even after buy back, the assessee Company will remain the subsidiary of M/s First Source Solution Ltd. It is noticed that the company is making regular profit and the total accumulated profit of the company as on 31.03.2011 after buy back of share stands at Rs. 47 crores. The assessee has not declared the dividend for the reason that if dividend is declared, it is required to pay dividend tax @15% on the distributed amount. This implies that the proposal of buyback was a scheme devised for tax avoidance and was a colorable device for avoiding dividend tax under Section 115O of the Act. The assessee has resorted dubious method of buyback fo shares to avoid dividend tax. Thus th....

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....ncome has escaped assessment for the year under consideration have been recorded above para no.2. I have carefully considered the assessment records containing the submissions made by the assessee in response to various notices issued during the assessment proceedings and have noted that the assessee has not fully and truly disclosed the following material facts necessary for its assessment for the year under consideration: • Dividend Distribution and, • Tax paid on the same It is evident from the above facts that the assessee had not truly and fully disclosed material facts necessary for its assessment for the year under consideration thereby necessitating reopening u/s 147 of the Act. It is true that the as....

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....1,04,29,642/chargeable to tax in A.Y. 2011-12 has escaped assessment within the meaning of provision of section 147 of the Income Tax Act. Hence, I am satisfied that this is a fit case to reopen the assessment u/s 147 of the IT Act." 6. Upon being supplied the reasons recorded by the Assessing Officer, the petitioner raised objections to the notice of reopening under communication dated 14.12.2018. Such objections were dismissed by the Assessing Officer by an order dated 14.12.2018. Hence, this petition. 7. Having heard learned Counsel for the parties and having perused the documents on record, in our opinion, the impugned notice is required to be set aside. It may be noted that the impugned notice is issued beyond the period of 4 yea....