2024 (2) TMI 164

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....012 obtained from an independent valuer. The valuation was based on Discounted Cash Flow ("DCF") method based on projections of Shrenik. 2. During Assessment Year ("AY") 2014-15, Shrenik had issued equity shares of face value of Rs. 10 per share at a premium of Rs. 508.20 and Rs. 582.92 per share to Petitioner. The issue price was determined on the basis of valuation reports following the DCF method. Subsequently, Shrenik got amalgamated with Petitioner effective from 1st April 2015. In its return of income filed on 29th November 2014 for AY 2014-15, Petitioner declared NIL taxable income. The assessment was concluded after scrutiny proceedings and an assessment order dated 15th December 2016 under Section 143(3) of the Income Tax Act, 196....

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.... in this Petition by amending the Petition pursuant to leave granted on 5th May 2022. Pleadings are completed and hence, we decided to dispose the Petition at this stage itself with the consent of counsel. Therefore, Rule made returnable forthwith. 4. Though various grounds have been taken in the Petition, the primary ground that Mr. Pardiwalla raised was, this is a clear case of change of opinion because the issue of excessive share premium was the subject matter of consideration during the assessment proceedings. 5. Mr. Suresh Kumar submitted that the entire premium charged was on the basis of certain projections, which were not achieved and when the actual performance for AY 2013-14 to 2016-17 is seen, there is absolutely no connection....

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....hich it is stated as under: "2. During the period under reference, there is addition of Share Capital of Rs. 20,16,99,350.56 including share premium. During the year, the company has issued fresh shares 304225 No's at Rs. 518.20 (Face value Rs. 10 and share premium Rs 508.20) and 74,292.00 No's at Rs. 592.93 (Face value Rs. 10 and share premium Rs 582.93) to Gestamp Powergear Windsteel Pvt. Ltd. In this connection we are enclosing herewith following documents: i. Summary chart showing details of addition in share capital and share premium ii. Copies of bank statement in which capital has been introduced. iii. Copy of Income tax acknowledgment, financial statements and copy of FIRC of investing company Gestamp Powergear Wi....

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..... In our view, the reason to reopen is purely on the basis of change of opinion. Indisputably queries have been raised during the assessment proceedings regarding large share premium received during the year, the details of investors and petitioner has provided all details sought for. While providing the workings, petitioner also explained that the Goodwill of Rs. 26 Crores has been factored while arriving at the share premium. Even in the assessment order, the Assessing Officer has referred to notice issued under section 143(2) as well as 142(1) of the Act and the Assessing Officer has also confirmed having received all information. 10. As held by this Court time and again and particularly in Aroni Commercials Ltd. v. Dy. CIT [2014] 44 ....