TaxTMI 
TaxTMI 
2024 (2) TMI 1229
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....e enquiries had accepted claim of the appellant then such an order of assessment could not be regarded as erroneous in as much as prejudicial to the interest of revenue merely because the learned Commissioner of Income Tax had a different opinion and that too, without having established in any manner that, view adopted by the learned Assessing Officer was an impossible or unsustainable view. 3. That further more the learned Principal Commissioner of Income Tax has proceeded to set aside the order on mere speculation, generalized observations, theoretical allegations and assertions, without there being any supporting evidence and is therefore not in accordance with law. 4. That even otherwise the finding that order of assessment is erroneous in as much prejudicial to the interest of revenue on the ground that an amount of Rs.6,19,383*97=60080054 is liable to be in the income of the appellant u/s 56(2)(x)(c)(B) of the Act" is based on factually incorrect assumption, incorrect applicable to the provisions of law and therefore untenable. 5. That finding of the learned Principal Commissioner of Income Tax that "As per the valuation report of M/s Ozone Overseas....
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....ares by Rs.97 per share. As per the provisions of Section 56(2)(x)(C) (B) of the Income Tax Act, 1961. Where any person receives in any previous year any property other than immovable property, the aggregate fair market value of such property as exceeds the purchase consideration is liable to be included in the income of the assessee as income from other sources. Thus an amount of Rs.6,19,382 x 97=60080054 is liable to be in the income of the assessee. It is noted that the Assessing Officer has not included this income to the total income declared by the assessee, has been passed by the Assessing Officer without due diligence and without making inquiries or verification which should have been made, is prejudicial to the interest of assessment order which is passed by the assessing officer without making inquiries or verification which should have been made or the order is passed allowing any relief without inquiring into the claim, shall be deemed to be erroneous in so far as it is prejudicial to the interest of the revenue." 3. Aggrieved by the order dated 31/03/2023 passed u/s 263 of the Act by the PCIT, the Assessee preferred the present appeal on the ground mentioned above. ....
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....n of income along with computation of income and financial statement for financial year 2015-16 relevant to assessment year 2016-17. v) Copy of acknowledgement of return of income along with computation of income and financial statement for financial year 2016-17 relevant to A.Y 2017-18. 9. The Assessing Officer asked the further details vide letter dated 24/11/2020 as follows:- "Please furnish the following documents/information. 1. Detailed note on nature of business carried out during the AY. 2018-19 as well as during last three preceding previous years. 2. Computation of income for the AY 2018-19. 3. Copies of bank statements of all bank accounts with narration for the period 01.04.2017 to 31.03.2018. 4. With respect to the fresh issue of share during the year under consideration, kindly submit the below specified details: a) Name and address of the shareholders. b) PAN of the shareholders. C) Face Value of each share. d) Number of shares allotted to each shareholder. e) Total value of the shares allotted to each shareholder. f) Payment received from each shareholder d....
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....nder:- "The Assessing Officer National e-Assessment Centre New Delhi. Dear Sir, SUB: Assessment proceedings u/s 143(2) In the case of M/S OZONE E-VENTURES PVT LTD.(AABCO7007K) FOR THE A.Y. 2018-19 Dear Sir/Madam, We are in receipt of notice u/s 142(1) dated 24.11.2020 vide DIN:- ITBA/AST/F/142(1)/2020- 21/1028711478(1). In this regard we enclose part details as required in the notice:- 1. The assessee Company was carrying out e-commerce trading as well as retail trading business of all types of mobile phones accessories such as speakers, tempered glass, data cables etc and medical devices. The assessee Company was doing the same business in the preceding three previous years too and there is no change of business. 2. We enclose copy of computation of income for the year under review for records and perusal. 3. Copies of bank statements for the year under review are enclosed. The assessee Company had maintained following bank accounts details of the same are as under:- S. No. Name of Bank Address Account No. 1 Yes Bank KIRITI NAGAR, NEW DELHI 034081300000227 2 HDFC Bank ....
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....edeemable preference shares were issued at par as there was no requirement for any valuation in this case. The Company had not issued any equity shares to Ozone Overseas Private Limited 3. As already stated, no equity shares were allotted in the year under review and immediate preceding year and the working of EPS is not relevant for issue of Redeemable Preference Shares. 4. The Company has not declared any dividend during the year under review nor in any previous 3 years. The Company had been suffering losses in the past as is evident from the audited financial statements enclosed. Annexure B 1. The assessee Company had made investment in purchasing equity shares of Ozone Overseas Pvt. Ltd. in the year under review which are duly reflecting in the audited financials of company. As required details of investment made during the year is as under:- S. No. Nature of Asset Purchase Consideration (Rs.) Date of Purchase Mode of Acquisition Source of funds for Investment 1 607067 Equity Shares 1,39,35,04,086/- 17.11.2017 By Bank Transfer Issue of Preference Shares and Loan from Axis Finance Limited /Sale proceeds 2....
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....he Assessee Company has also sold part of the shares purchased on 7.12.2017 and 14.12.2017 at the purchase price to the following persons:- i. Dinesh Kumar Jhunjhunwela 8713 Shares 2,00,00,430/- ii. Gaurav Kumar Jhunjhunwela 13069 Shares 2,99,99,497/- iii. S Chand Properties (P) Ltd. 13069 Shares 2,99,99,497/- No Capital Gains accrued on the sale as the same were sold at the acquisition price of Rs. 2295.47 per share within a span of less than one month. Thus a net total Investment of Rs. 134,16,58,603/- was made out of funds as discussed above. The Company sources for acquisition of shares are as follows:- Loan from Axis Finance Limited Rs. 51.00 cr Issue of Redeemable Preference Shares Rs. 90.00 cr Total Rs. 141.00 cr Ledger account of Axis Finance Limited is enclosed for records. Further the Interest paid on loan of Rs. 2.12 cr to Axis finance limited was also capitalized to the cost of investments. Thus the total Investment value as on 31.3.2018 stood at Rs. 136.28 cr 2. No Income has been received on the investments made by the Company during the year under review. 3. Th....
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....expenses were incurred, no exempt income as earned and besides the interest paid on loan availed stands capitalized. All the details sought for in the questionnaire stands submitted. In case any other information is required, the same shall be promptly attended to. We regret the delay in providing the replies to information sought for. Thanking You, For ANIL KHATRI & CO. Chartered Accountants -sd/- Authorized Signatory Encl: As Above 12. The shares purchased by the assessee at an average rate of Rs. 22,95.47 per share, the FMU value of the share is Rs. 2392 as per DCF Method and the NAV of the share is Rs. 835. Thus, it is the case of the assessee that the assessee has brought shares at more than NAV. The ld. A.O. after examining the valuation and other particulars of the investment has made no addition. The Ld. PCIT observed that as per the provision of Section 56(2) (x)(c)(B) of the Act where a person received any previous year, any property other than immovable property the aggregate fair market value of such property has exceed the purchase consideration is liable to be included in the income of the assessee as income fro....