2010 (10) TMI 92 - HC - Income Tax

Issue shares in accordance with its Memorandum and Articles of Association - Four private limited companies decided to invest in the shares of the petitioner company - assessee-petitioner allotted the shares to these four companies - companies were active as per the records of the Registrar of Companies (ROC) and are assessed to income-tax and have been allotted permanent account numbers by the Income Tax Department - petitioner alleging that he had reason to believe that the income chargeable to tax for the assessment year 2003-04 had escaped assessment within the meaning of Section 147 of the Act - he required the petitioner to file the return for the said assessment year - Held that: - companies had bank accounts and payments were made to the assessee company through banking channel - identity of the companies was not disputed - proceedings under Section 147 and issuance of notice under Section 148 of the Act are hereby quashed - Appeal is dismissed