2025 (12) TMI 472

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....mpany (NBFC) duly registered with RBI vide Registration dated 23.05.2002. The assessee filed its return of income for the AY 2012-13 on 29.12.2012 declaring total income of Rs. 5,90,650/-. The case of the assessee was selected for scrutiny and the assessment was completed u/s. 143(3) of the Income Tax Act, 1961(hereinafter referred to as 'the Act'). In original assessment proceedings, the Assessing Officer (AO) examined the issue of share capital and share premium. Notice u/s. 133(6) of the Act was issued to the share applicants. After considering the replies of the investor, the AO completed the assessment accepting returned income vide order dated 02.02.2015. The said assessment order is at page no.73 of the paper book. Thereafter, notice....

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....reply dated 22.12.2014 confirmed that it has made investment in 45000 shares of the assessee company having face value of Rs. 10/- each issued at premium of Rs. 30/- per share. Thus, the said company had confirmed that it subscribed to shares of the assessee with total investment of Rs. 18,00,000/- during the period relevant to assessment year under appeal. The AO while completing the assessment u/s. 147 of the Act has again made addition of Rs. 3,00,000/- in respect of M/s. MJH Consultants P. Ltd. Further, addition of Rs. 7,00,000/- from investment by M/s. Adhik Multitrade P. Ltd. and Rs. 12,00,000/ investment by M/s. Akul Multitrade P. Ltd. has been made holding it to be accommodation entries. This is clearly a change of opinion. The AO i....

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.... submits that the AO was not having any relevant document before issuing notice u/s. 148 of the Act or even at the time of recording reasons for reopening. The ld. Counsel referred to the assessment order where in para 4, the Assessing Officer while replying to the request of assessee for inspection of records observed, that assessment order dated 02.02.2015 was readily available for inspection and the rest of the records are being fetched. The AO reopened the assessment merely on the basis of information received by the Investigation Wing. Such reopening or assessment where the 'reasons to believe' are not that of Assessing officer, the reason for reopening are unsustainable. The ld. Counsel thus prayed for quashing reassessment proceeding....

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....essment for such assessment year by reason of failure on the part of the assessee to disclose fully and truly all material facts necessary for his assessment in the return of income for that assessment year. From the reasons recorded by the AO it is not emanating that the AO has complied with the conditions set out by the first proviso to section 147 of the Act. Per contra, the assessee has placed on record the inquiries made by the Assessing Officer during assessment proceedings u/s. 143(3) of the Act with respect to the issue of share capital/share application money received by the assessee. The assessee has specifically pointed to the notice issued u/s. 133(6) of the Act to one such investor i.e. M/s. MJH Marketing Consultant P. Ltd. The....