TaxTMI 
TaxTMI 
2024 (8) TMI 125
X X X X Extracts X X X X
X X X X Extracts X X X X
....urnable forthwith. Learned Senior Standing Counsel Mr. Patel waives service of notice of rule for the respondent. 3. Brief facts of the case are that the petitioner received a notice under section 148A(a) of the Income Tax Act,1961 [for short 'the Act'] on 07.02.2023 requiring the petitioner to submit the source of amount of Rs. 1,96,36,83,592/- invested in the subsidiary Indian Company. The petitioner, in response to such notice, filed copy of bank statement along with Foreign Inward Remittance Certificate, return of allotment filed in Form PAS-3 with Registrar of Companies, copy of minutes and board resolutions passed for allotment of shares. 4. However, the respondent-Assessing Officer issued notice under section 148A(b) of the Act dat....
X X X X Extracts X X X X
X X X X Extracts X X X X
....us, the income of Rs.1963683592/- has escaped as you did not file the return of income even though the total income exceeded the maximum amount which is not chargeable to tax in the previous year relevant to assessment year 2019-20. 3. In view of the above and on the basis of information available with this office, it is established that income to the tune of Rs.1963683592/- has escaped assessment within the meaning of provisions of section 147 of the Act." 5. The petitioner, in response to the aforesaid notice, gave further reply contending that the petitioner during A.Y. 2019-20 invested Rs. 1,96,36,83,592/- in the Indian Subsidiary by acquiring 8,33,482 shares and the said investment made by petitioner is out of the fund received fr....
X X X X Extracts X X X X
X X X X Extracts X X X X
....icate and Fair Market Valuation Report of shares purchased by it. As the assessee has not furnished any FMV report, the provisions of Section 56 (2) (x) (c) of the Act clearly applicable in the case of the assessee. Section 56 (2) (x) (c) provides that - 56.(1)........ (2) in particular, and without prejudice to the generality of the provisions of sub-section (1), the following incomes, shall be chargeable to income-tax under the head "Income from other sources", namely : (x) where any person receives, in any previous year, from any person or persons on or after the 1st day of April, 2017, (a).... (b)...... (c)......any property, other than immovable property, - (A) without consideration, the aggregate fair market value....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... assessee has entered into financial transaction amounting to Rs.196,36,83,592/-which remain unexplained. This clearly shows that income for the year under consideration has exceeded the maximum limit not chargeable to tax. But assessee has not filed any return of income. Considering facts and circumstances & material available on records which includes information flagged on the system, I am satisfied that income amounting to Rs.196,36,83,592/- chargeable to tax and has escaped assessment and this is fit case for issuing notice u/s 148." 7. Thus, on perusal of the aforesaid observation made in the impugned order passed under section 148A (d) of the Act and the notice under section 148A (b) of the Act, it is apparent that the reasons assi....