TaxTMI 
TaxTMI 
2025 (7) TMI 301
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....ut of the appeal before it against the order dated 26.03.2021 passed u/s 143(3) r.w.s. 143(3A) & 143(3B) of the Income Tax Act, 1961 (hereinafter referred as 'the Act') by the National e-Assessment Centre, Delhi (hereinafter referred to as the Ld. AO), respectively. 2. Heard and perused the records. The facts coming up from records and rival submissions are that assessee filed return filed on 25.03.2019, declaring income of Rs.87,30,790/ and the case of the Assessee was selected for complete scrutiny to examine foreign financial interest and notice under section 143(2) of the Act issued on 22.09.2019. During the impugned AY, the Assessee was a Managing Director in M/s Euro bearings India Pvt. Limited ("EUBI") and a partner in M/s Ultrate....
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....e Assessee on the following grounds: i. The value of the shares of EUBI as per audited financials as on 31.03.2016 on the date of purchase was not revealed by the Assessee by submitting a similar certificate as per Rule 11UA of Income Tax Rules. ii. The Assessee has purchased on 06.03.2017 at a higher rate than the actual value from M/s Alps Investment Private Limited,ie, the company owned and controlled by the Assessee's parents iii. The reason for the transfer and gift submitted by the Assessee was the reorganisation of the family business. However, there is no MOU or any other agreement or settlement deed or partition deed furnished by the Assessee in support of his claim that there was a reorganisation of the ....
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....OF SHARES BY ASSESSEE FROM ALPS INVESTMENT PRIVATE LIMITED i. Copy of bank statement reflecting payment made by Assessee on 10.01.2017 and 13.02.2017 for acquisition of 1,35,86,322 shares of EUBI from Alps Investment Private Limited- refer page 49-50 of PBK ii. Form SH 1 and Debenture cum share certificate at page 25-32 of PBK showing the Assessee, his mother and brother as transferee of shares of EUBI as on 06.03.2017 iii. Form SH 4 Securities transfer form dated 23.02.2017 showing purchase of shares of EUBI from Alps Investment Private Limited by the Assessee, his mother and brother at page 23-24 of PBK iv. Admitted by the Ld. AO that as per Annual Return Form MGT-7 filed with ROC on 18.12.2017, the Ass....
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....mation from Assessee's mother regarding gift of her share of 1,35,86,322 shares in EUBI to Assessee on 28.03.2018 along with her ITR for AY 2018-19 -refer page 52-53 of PBK ii. Confirmation from Assessee's brother regarding gift of his share of 1,35,86,322 shares in EUBI to Assessee on 28.03.2018 along with his ITR for AY 2018-19 -refer page 54-55 of PBK iii. Form SH 4 Securities transfer form dated 28.03.2018 showing transfer of shares of EUBI by the Assessee's brother and mother to Assessee at page 33-34 of PBK iv. Acknowledgement dated 28.03.2018 from EUBI for endorsing the transfer of shares of EUBI by Assessee to his father and receipt of Form SH 4 with share certificates at page 110 of PBK ....
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....,966 shares held by the Assessee, his brother and mother to the Assessee and his father on 25.07.2018 Page 165 - 168 of PBK" 5. Now what comes up is that the shares were transferred on 28.03.2018, but the company registered the transfer in its books only in July 2018, following the Board of Directors (BOD) meeting held on 25.07.2018. Therefore, the share transfer is reflected in the company's records in FY 2018-19, not FY 2017-18. The case of assessee is that while filing Form MGT-7, the Company Secretary may have mistakenly shown all 40,758,966 shares as being held by Samuya Mittal, although the shares were jointly purchased. However, as per the List of Shareholders as on 31.03.2018 attached with Form MGT-7, 40,758,966 shares were held ....
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....ics Solutions Pvt. Ltd. The assessee had claimed before the tax authorities that there was a reorganization of family business, however, on the basis of that no MOU or any other agreement or settlement deed or partition deed has been furnished by the assessee in support of her claim that there was a reorganization of family business. The claim cannot be doubted unless otherwise any of the parties has disputed the same. An oral agreement between the family members reflected in the transactions should be given equal credibility. Only on the basis of certain deficiencies found in the information maintained by the ROC drawing inferences that transaction has not taken place at all is not justified when the movement of consideration even if by wa....