2019 (3) TMI 1125

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..... In order to do so, he recored the following reasons:­ "1. Brief details of the assessee:­ The original return of income was e­filed on 29/09/2011, declaring total income of Rs. Nil and current year loss at Rs. 5,97,19,479/­. Subsequently, the revised return of income was e­filed on 31­03­2012 showing total income at Rs. Nil and current year loss at Rs. 6,45,41,300/­. The case was selected for scrutiny for A. Y. 2011­12. The assessment was completed on 26/12/2013 determining total loss at Rs. 6,45,41,300/­. The company is engaged in generation and sale of electricity through wind mill. 2. Brief details of information collected/received by the AO:In this case, information has been received from ADIT (INV.) UNIT­4(2), MUMBAI vide letter dated 15.03.2018, that NuPower Renewables Pvt. Ltd. has received amount of Rs. 49,90,48,000/from Mauritius based Firstland Holdings Ltd. in F. Y. 2010­11 being subscription towards 0.000% Compulsory Convertible Cumulative Preference shares (4,99,048 nos.) 3. Analysis of information collected/ received: On perusal of Form 2 filed with ROC in this respect clearly indicates that 4,99,048 nos. of s....

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....tion has escaped assessment because of failure on the part of the assessee to disclose full and truly all material facts necessary for his assessment for the assessment year under consideration. It is pertinent to mention here that reasons to believe that income has escaped assessment for the year under consideration have been recorded above (refer paragraphs 2,3 and 5). 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 his assessment for the year under consideration. The NuPower Renewables Pvt. Ltd., has received amount of Rs. 49,90,48,000/­ from Mauritius based Firstland Holdings Ltd., in F.Y. 2010­11. The source, genuineness and creditworthiness of the foreign entity M/s. Firstland Holdings Limited, Mauritius, remains unexplained and needs further investigation. In this respect reference to the competent authorities of Mauritius through FT & TR Division has been made. It has been resulted in underassessment of income to the extent of Rs. ....

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....supplied the reasons, the Assessee raised objection to the notice of re­opening of an assessment under a communication dated 5th October, 2018. Such objections were rejected by the Assessing Officer by an order dated 22nd November, 2018, upon which, this Petition has been filed. 5. Appearing for the Petitioner, learned Counsel Shri Pardiwalla, Sr. Counsel, raised following contentions:­ (i) The impugned notice has been issued beyond a period of four years from the end of the relevant Assessment Year. There was no failure on the part of the assessee to declare fully and truly all material facts; (ii) The ground on which the Assessing Officer wishes to rely upon was examined by the Assessing Officer during scrutiny assessment. Without their being any new or additional material, re­opening assessment on the basis of said ground, is not permissible; (iii) Counsel contended that, the Assessing Officer desire to carry out enquiries. 6. On the other hand, learned Counsel Shri Walve for the Department oppose the Petition, contending that, the Assessing Officer has recorded elaborate reasons for issuing impugned notice. The genuineness of the investments made in t....

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....,000 (2010: 4,500,000) equity shares of Rs. 10 each. 500,000 (2010: Nil) compulsorily convertible preference shares of Rs. 1,000 each 4,50,00,000 50,00,00,000 4,50,00,000 ­     54,50,00,000 4,50,00,000   Issued, subscribed and paid­-up 50,000 (2010:50,000) equity shares of Rs. 10 each, fully paid up (refer note I) 499,048 (2010: Nil) 0.0001% compulsorily convertible cumulative preference shares of Rs. 1,000 each, fully paid up (refer note ii) 5,00,000 49,90,48,000 5,00,000 ­   49,95,48,000 5,00,000 Note:­     (i) Of the above equity shares, 47,496 (2010: 47,496) equity shares of Rs. 10 each, fully paid up, are held by Supreme Energy Private Limited, the Holding Company. (ii) The company has allotted 499,048 (2010: Nil) 0.001% compulsorily convertible cumulative preference shares (CCPS) of Rs. 1,000 each fully paid up by way of preferential allotment to Firstland Holdings Limited, Mauritius on 31^st December, 2010. The said CCPS shall be converted, on conversion date, into equity shares in accordance with the pricing guidelines prescribed by the Reserve Bank of India such that t....

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.....00 US$. The Petitioner also supplied the bank statement in which, said amount was reflected. The Petitioner had also produced tax residence certificate of Firstland. The Petitioner had also produced the ledger account, containing share application money being credited on 7th July, 2010 and the source thereof. 13. It was after such scrutiny that, the Assessing Officer had passed the order of assessment, in which, he made no additions in respect of the share application money. The entire issue was thus, scrutinized by the Assessing Officer. Despite such scrutiny and the disclosures of the transaction by the assessee, if the Assessing Officer was in possession of additional information, prima facie, showing that, the entire transaction was bogus and that, the source of fund itself was not genuine. It may still be open for the Assessing Officer to re­open the assessment. 14. However, whether the Assessing Officer had any such information at his command and the manner in which, the Assessing Officer processed such additional information(s) to form a belief that, income chargeable to tax has escaped assessment, shall have to be gathered from reasons recorded by him for issuing....