TaxTMI 
TaxTMI 
2024 (7) TMI 446
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....'the Act') seeking, inter-alia, reopening of the assessment for the Assessment Year 2015-16. 2. Brief facts of the case are as under : 2.1 The petitioner was engaged in e-commerce, information technology and IT enabled services. During the year under consideration, the petitioner had issued shares at premium at Rs. 415/- per share. As a result thereof, in the annual account under the head 'security's premium' which was Rs. 1,03,58,75,980/- as on 31.3.2014 increased to Rs. 2,28,09,76,200/- as on 31.3.2015. Thus, Rs. 1,24,51,00,220/- increased in security's premium. 2.2 The petitioner filed return of income for the year under consideration on 30.11.2015, declaring total loss at Rs. 7,26,11,928/-. The case was selected for scrutiny and ther....
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.... 1.3.2022 disposed of the objections and held that the action of reopening of assessment in case of the petitioner for the year under consideration is justified. 3. Being aggrieved by the aforesaid, the petitioner has approached this Court for the appropriate reliefs. 4. We have heard learned Senior Advocate Mr. Tushar Hemani with learned advocate Ms. Vaibhavi Parikh for the petitioner and learned advocate Mr. Varun K. Patel for the respondent. 5. Learned Senior Advocate Mr. Tushar Hemani for the petitioner, while challenging the impugned notice, has made the following submissions: (1) Learned Senior Advocate Mr. Hemani submitted that reopening is beyond the period of 4 years and there is no failure on part of the petitioner as to true....
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....missible for carrying out fishing and rowing inquiry and/or investigation without there being any specific finding as to escapement of income. Mr. Hemani, therefore, submitted that the assessment sought to be reopened, as can be evident from the reasons recorded, is for the purpose of making inquiry and/or investigation in relation to the issue on hand and that is not permissible as per the settled principle of law. (4) Learned Senior Advocate Mr. Hemani submitted that as is evident from the reasons recorded, reopening is sought on a borrowed satisfaction. To substantiate the same, Mr. Hemani submitted that there is no specific reasons recorded by the Assessing Officer to merely rely upon the information received from the external source....
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....e belief. Learned advocate further submitted that in the instant case, as per the information received from the investigation wing, it has been noticed that the petitioner has been issued 2989208 shares of share premium of Rs. 415/- and thereby the share premium reserve for drastically increased to the extent of Rs. 124,51,00,220/-. Learned advocate, therefore, submitted that in view of unnatural hike in share premium reserve, it gives rise to strong suspicion on the aspect of genuineness and creditworthiness of the share subscribers. Thus, the impugned notice under Section 148 of the Act has been issued in accordance with law and with all pre-requisite criteria. (4) Learned advocate Mr. Patel lastly submitted that there cannot be said t....
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....The share premium reserve as on 31.03.2014 is Rs. 1,03,58,75,980/- as per ITR of AY 2014-15 where as share premium reserve as on 31.03.2015 is Rs. 2,28,09,76,200/- as per ITR of AY 2015-16 i.e. rise of Rs. 1,24,51,00,220/-. There is a substantial increase in share capital due to exponentially hike in share premium which do not match with the financial of the assessee and also raised question on identity, genuineness and creditworthiness of share subscribers. Therefore, share premium of Rs. 1,19,97,08,655/- received by the assessee, is required to be verified. Failure on the part of the assessee to disclose fully and truly all the material facts necessary for the assessment, the income of the assessee has escaped assessment to the tune of Rs....
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....10.2020 where copy of assessment order u/s 143(3) of IT Act dated 28.04.2017 was provided alongwith copy of notices u/ s 142 (1) of IT Act dated 20.03.2017. It was observed that the issue of rise in share premium was discussed during the course of assessment proceedings. The documentary evidence for the same is placed on record i.e. point number (3) of Notice u/s. 142 (1) dated 20.03.2017 shows the verification with respect to security premium done by then AO at the time of scrutiny assessment. (Copy of the assessment order and copy of notice u/s. 142 (1) of the IT Act along with reasons are placed on record). ACIT did not take adverse view with respect to rise in security premium for AY 2015-16. AO has not mentioned the details of amount o....