TaxTMI 
TaxTMI 
2025 (3) TMI 999
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....the order dated 03.01.2023 passed u/s 250 of the "Act" by the National Faceless Appeal Centre (NFAC), Delhi is against law and facts on the file in as much as he was not justified to uphold the action of the Learned ITO, Ward - 15(3)(3), Mumbai in adding back a sum of Rs. 80, 00, 00, 000/- received by the Appellant Company from M/s Sur Buildcon Pvt Ltd (now known as Globus Real Infra Pvt Ltd) and M/s Tremendous Mining & Mineral Pvt Ltd by treating the said receipt as unexplained cash credit under Section 68 of the Act. 3. That the order dated 03.01.2023 passed u/s 250 of the "Act" by the by the National Faceless Appeal Centre (NFAC), Delhi is against law and facts on the file in as much as he was not justified in neither considering nor discussing and adjudicating on the ground relating to reassessment order passed being non-est and bad in law in as much as the proceedings had not been conducted in the manner prescribed by the Departmental instructions, in particular those relating to e-proceedings, issued from time to time, which were to be mandatorily complied with by the Ld. Assessing Officer. 4. That the Appellant craves to add, amend, alter, modify or delete ....
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....e AO examined the facts independently and with due diligence it was found that there was a failure on the part of the assessee to disclose fully and truly all material facts necessary for its assessment for the year under consideration. Accordingly, a reason to believe was formed and notice u/s 148 of the Act was issued to the assessee. Reasons recorded for reopening of assessment read as under:- 7. We have carefully perused the reasons mentioned hereinabove. Though the AO has mentioned that there is failure on the part of the assessee company to disclose fully and truly, all material facts necessary for its assessment for the year under consideration, we fail to understand what are those material facts which were not disclosed fully and truly. During the course of original assessment proceedings, the assessee had filed detailed reply to the queries raised by the AO vide reply dated 13/11/2014 which is placed in paper book from pages 152 to 153 and at point no. 6, the assessee has furnished details of increase in share capital along with the confirmation bank statements and ITRs in respect of those parties from whom share application money has been received during the year. 7....
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....read as under:- "Income escaping assessment. 147. If the Assessing Officer has reason to believe that any income chargeable to tax has escaped assessment for any assessment year, he may, subject to the provisions of sections 148 to 153, assess or reassess such income and also any other income chargeable to tax which has escaped assessment and which comes to his notice subsequently in the course of the proceedings under this section, or recompute the loss or the depreciation allowance or any other allowance, as the case may be, for the assessment year concerned (hereafter in this section and in sections 148 to 153 referred to as the relevant assessment year) : Provided that where an assessment under sub-section (3) of section 143 or this section has been made for the relevant assessment year, no action shall be taken under this section after the expiry of four years from the end of the relevant assessment year, unless any income chargeable to tax has escaped assessment for such assessment year by reason of the failure on the part of the assessee to make a return under section 139 or in response to a notice issued under sub-section (1) of section 142 or section 1....
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....opening of the assessment had admittedly taken place beyond a period of four years from the end of the relevant assessment year. There was no allegation in the reasons which had been disclosed to the assessee that there was any failure on his part to fully and truly disclosed material facts necessary for assessment for relevant assessment year. Hence, the jurisdictional condition for reopening the assessment beyond a period of four years had not been fulfilled. Even during the course of hearing, it had not been the submission of the revenue that there was any suppression of material facts on the part of the assessee. Therefore, the impugned notice was to be set aside." 15. In another case of First Source Solutions Ltd. vs. ACIT in [2021] 438 ITR 139 (Bombay), the Hon'ble Jurisdictional High Court, held as under:- "11. Therefore, when the assessment is sought to be reopened after the expiry of period of four years from the end of the relevant year, the proviso to section 147 stipulates a requirement that there must be a failure on the part of the assessee to disclose fully and truly all material facts necessary for his assessment for that year. This stipulation does not ....
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....nd income of the assesee was assessed at Rs. 80,000/- under section 143(3) of the Income-tax Act, 1961. The assessee is not a 'company in which public are substantially interested' in terms of provisions of section 2(18) of the Income-tax Act, 1961. 2. In the instant case, it has been gathered that during the previous year relevant to the assessment year 2012-13, that the assessee has issued 40,00,000 equity shares of face value of Rs. 10/- at a premium of Rs. 190/- per share. Thus, total share premium received during the year is of Rs. 76,00,00,000/-. On examination of the Part A BS, i.e. balance sheet of the ITR 6 for the assessment year 2012-13, it is observed that the assessee company has shown the Securities Premium Account at Rs. 77,84,14,000/- 3. In view of the facts set out above, the documents/information furnished by the assessee with the Registrar of Companies, were examined on the website of Ministry of Corporate Affairs through 'View Public Documents' and on such examination it was found that the assessee has issued and allotted 2000000 equity shares, each to two different companies at total consideration of Rs. 80,00,00,000....
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.... (if any) & Annual Retum for the relevant period. The assessee was also asked to fumish the Name and address of the applicant(s), their PAN, No. of shares applied for, Number of shares allotted, Consideration received in cash or kind and Total Payment received. The said notice was issued to the assessee through Indian Post and also sent electronically through Email. However, no reply was filed by the assessee. 7.1 Meanwhile, information has also been received from the ADIT (Investigation), Unit - 3(4), New Delhi that a company, M/s Jawahar Credit & Holdings Private Limited, during the previous year relevant to the assessment year 2012-13 has made investment in shares of the assessee, M/s Savroli Finvest Limited amounting to Rs. 3,67,25,000/- for 183625 equity shares. Moreover 146900 bonus shares have also been issued by the assessee to M/s /Jawahar Credit & Holdings Private Limited. 7.2 Information shared by the ADIT (Inv.), Unit- 3(4), New Delhi was culminated from the investigation carried out in the case of M/s Jawahar Credit & Holdings Private Limited that the said company had issued 300000 shares at Rs. 200/- per share (face valu....