TaxTMI 
TaxTMI 
2018 (3) TMI 2043
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.... notice dated 30th March 2017 issued by the respondent-Assessing Officer to reopen the petitioner's assessment for the assessment year 2010- 2011. In order to do so, he had recorded the following reasons : "The assessee company has filed its return of Rs. 2,86,520/- for the AY 2010-11. As per records, the assessee I.e, Gujarat Television Private Limited has received huge amounts from various companies in various dates and repaid the same on the same date on which date the same was been received. The details of amounts received and its repayment by the GTPL are as under : Sr No Name of company from loan received Details of unsecured loan received Details of unsecured loan paid Re....
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....7/09 Rs.50,00,000/ 24/07/09 Rs.50,00,000/- 107520/- For the reference year ie. FY 2009-10, it is also seen that the company's paid up share capital was of Rs. 1,00,000/- and the Reserves & Surplus was slightly increased to Rs. 5,05,834/-. The company also shown the unsecured loans of Rs. 4,99,81,470/- in the balance sheet. In this year also, the company income from its operation was only Rs. 30 lacs and the net profit for the year was of Rs. 168794/-. The company has filed its return of income of Rs. 2,86,520/-. In the FY 2010-11, it is seen that the company's share capital has increased substantially from Rs. 1,00,000/- to Rs. 1,90,00,000/- and the Reserves and Surplus was increased to Rs. 5,23,....
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.... the reopening has been resorted to for further investigation which is not permissible. On the other hand, counsel for the revenue has submitted that the Assessing Officer has recorded proper reasons. Eight different companies who had between themselves advanced a sum of Rs. 4.82 Crores during the year under consideration which on verification were found not to have necessary resources for making such large advances. This was thus a clear case of addition under Section 68 of the Act. The reasons thus have a live link with the Assessing Officer's formation of belief that the income chargeable to tax has escaped the assessment. We have reproduced the reasons recorded by the Assessing Officer. Gist of such reason is that during the year ....
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....cial year. There was no question of such amounts being unsecured loans of the company which stood converted into share capital with premium. In fact, accounts of the assessee company for the subsequent assessment year which have been produced on the record would show that the share premium shown to have been received of Rs. 4.19 Crore was from one Vikas TV Alliance Private Limited and it is this Vikas TV Alliance Private Limited which had advanced unsecured loan of Rs. 4.99 Crores [rounded off] during the said period. If the Assessing Officer had reason and therefore wanted to target this transaction, the issue would have been examined differently. However, apparently, the Assessing Officer seems to have linked the unsecured loans of Rs. 4.....