TaxTMI 
TaxTMI 
2026 (2) TMI 1090
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....d with Section 147 was issued thereafter on 30.06.2024 calling for a response in respect of alleged set off in respect of carried forward loss, undervaluation of shares or alternatively repayment from and out of the securities premium account being treated as deemed dividend. The petitioner responded on 13.07.2021 to all the issues and submitted that there was no justification for reopening. Overruling such objections, order dated 01.12.2021 was issued and notice under Section 142(1) was issued also issued on even date. Notices under Section 148 and 142(1) are challenged in the present writ petition Contentions of counsel 2. Learned counsel for the petitioner submits that a petition seeking sanction for reduction of share capital was filed during the relevant period in Company Petition No.321 of 2014 before this Court. He submits further that said petition was allowed by order dated 06.11.2014 and that the minutes were drawn up as a part of such order. Referring to the order, he points out that it clearly records that payment was being made to the six shareholders mentioned therein at the rate of Rs. 76.98/- per equity share by utilising amounts available in the securities pr....
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....e following: file a return under Section 139 or in response to a notice under either Section 142(1) or Section 148 or otherwise fail to disclose fully and truly all material facts necessary for assessment for the year. According to him, the assessee's conduct does not justify reopening on any these criteria. 5. He placed reliance on the order dated 21.08.2024 of this Court in Redington (India) Limited v. Additional/Joint/Deputy/Assistant Commissioner of Income-Tax/Income-tax Officer and another, W.P.Nos.4726 to 4730 of 2022, wherein he submits that this Court relied on the judgments of the Supreme Court in Commissioner of Income-Tax v. Kelvinator of India Limited, (2010) 320 ITR 0561 and Commissioner of Income-tax v. ICICI Securities Primary Dealership Ltd., (2012) 24 taxmann.com 310 (SC), to conclude that the reassessment proceedings were a result of change of opinion. Learned counsel submits that the petitioner herein is on a stronger wicket. 6. By referring to the notice under Section 142(1) and the rejection of the petitioner's objections, learned counsel submits that reassessment is not justified merely because the Income-tax Department received information from the ....
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....such notice was issued after the expiry of four years from the end of the relevant assessment year. Against this factual backdrop, it is necessary to examine Section 147 as it stood then. In relevant part, Section 147 was as under: "147. Income escaping assessment: 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 esc....
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....ment thereof) and subject to the confirmation of the High Court of Judicature at Madras or the National Company Law Tribunal as the case may be and also subject to the approvals of the shareholders and subject to compliance with extant regulations framed by the governmental authorities and the Reserve Bank of India, the issued, subscribed and paid up Equity Share Capital of the Company be and is hereby reduced from Rs. 1,12,93,160 consisting of Rs. 11,29,316 equity shares of Rs. 10/- each fully paid up tο Rs. 40,21,630 consisting of 4,02,163 equity shares of Rs. 10/- each fully paid up and that such reduction be effected by returning to the following shareholders holding an aggregate of 7,27,153 Equity shares of Rs. 10/- each fully paid up constituting about 64.388% of the issued and paid up Equity Share Capital of the Company, at the rate of Rs. 76.98/- per equity share held by such shareholders." S.No. Name of the shareholder No. of shares 1. Helion Venture Partners India LLC 1,97,000 2. Helion Venture Partners India LLC 3,87,535 3. ICP Holdings I 45,462 4. SVB India Capital 2006 Trust 14,459 5. Christian Wedell 30,766....
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....spondence. By letter dated 08.06.2017, the petitioner was asked to provide a note on expenditure incurred in foreign currency and to explain if any shares were issued in that year. By reply dated 24.11.2017, the petitioner provided a copy of the ledger account relating to capital reduction during financial year 2014-15. The ledger account provides particulars of the shareholders who were paid towards reduction of capital. This information is contained at page 85 of the typed set. The petitioner has also annexed the certificate of registration of the order confirming the reduction of capital issued by the Registrar of Companies. Reference should also to be made to letter dated 28.11.2017 from the petitioner providing an explanation for the large outward remittances due to reduction of capital during the year. Three remittance certificates towards repayment to the capital investors during the year were enclosed. As an enclosure to letter dated 27.12.2017, the petitioner has provided in tabular form the amounts paid to each shareholder during the reduction of capital exercise including a break-up of the face value and premium. The relevant share certificates were also annexed to this ....