2011 (7) TMI 361 - HC - Income Tax

Income Escaped Assessment - Allotment of shares - Whether the proceedings initiated under Section 147/148 of the Act are invalid for want of jurisdiction as the pre-conditions for initiation of the said proceedings as stipulated in Section 147 of the Act are not satisfied - Swetu Stone Pvt. Ltd. had applied for and was allotted shares in the petitioner company on payment by cheque of Rs.5 lacs - All information as enclosed as Annexure, has been referred - This is the only material relied upon by the Assessing Officer - The said Annexure has been quoted - In this connection, notice that M/s Swetu Stone Pvt. Ltd. is an incorporated company and the petitioner has pleaded and stated that the said company has a paid-up capital of Rs.90 lacs - The company was incorporated on 4th January, 1989 and was also allotted a permanent account number in September, 2001 - There is no dispute to this extent - As per the judgments of the Delhi High Court in Commissioner of Income Tax versus SFIL Stock Broking Limited (2010 (4) TMI 102 - DELHI HIGH COURT) decided against the assessee - Hence, M/s Swetu Stone Pvt. Ltd. is a non-existing and a fictitious entity/person - Therefore, the present writ petition is allowed and writ of certiorari is issued quashing the proceedings u/s 148 of the Act.