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2016 (5) TMI 580 - DELHI HIGH COURT

2016 (5) TMI 580 - DELHI HIGH COURT - [2016] 384 ITR 424 - Reopening of assessment - share capital received - Held that:- The present case is one of change of opinion. The questionnaire and particularly question B.1 specifically raise the issue with regard to share capital. It requires the petitioner to give a list, source, genuineness, identity of the share holders along with confirmation copies of the ledger account of the party including confirmation of the mode, date, address and acknowledge .....

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ct would amount to nothing but a change of opinion, which is not permissible.In the present case also, there is not even a whisper of any allegation that there has been a failure on the part of the assessee to disclose fully and truly all material particulars necessary for assessment. - Decided in favour of assessee - WP(C) 2526/2015 - Dated:- 12-5-2016 - MR BADAR DURREZ AHMED & MR SANJEEV SACHDEVA JJ. For the Petitioner: Mr Salil Aggarwal and Mr Prakash Kumar, Advocates. For the Respondents .....

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he re-assessment proceedings have been initiated after a period of 4 (four) years from the end of the relevant assessment year and the pre-condition for such initiation that there was failure on the part of the assessee to fully and truly disclose all the material particulars necessary for the assessment is absent. It is contended that there was true and full disclosure of all material particulars made by the assessee and the reasons for re-opening do not even show that there was any such failur .....

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sued by the Assessing Officer during the original proceedings under Section 143(3) of the Act raising specific queries with regard to share application money. The specific query raised by the questionnaire dated 15.07.2009 pertaining to the share application money is as under:- B.1 For share capital, loans other than banks and inter corporate deposits, introduced/taken during the year and also in the period after passing of last order U/s' 1 43(3) give list, source genuineness, identity of t .....

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lete detail of fresh security deposits made by you during the year. File copy of ledger account and purpose of making deposit and of interest earned thereon, if any. 4. In response to the said query raised in the questionnaire, the assessee vide its response dated 07.08.2009 furnished the details of the share capital raised during the year. Alongwith with the response complete details of the shareholders, their addresses, PAN numbers and number of shares were furnished. In addition thereto, a co .....

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sha Impex Ltd. 2A/65, Ramesh Nagar, New Delhi-110 015 AAFCM0694J 66700 M/s Bhalotia Agro Industries Ltd. WZ-241/S, Ground Floor, Inderpuri, New Delhi AABCB0388G 60000 M/s Elbee Portfolio Ltd. WZ-134, Plot No. 170, Vishnu Garden, New Delhi-110018. AABCH0899D 50000 M/s First Hi-Fin Ltd. 73, Triloki Apartment, Plot No. 85, I.P. Extn. New Delhi-110 092 AAACF2099M 56700 M/s Salwan Developers & Promoters (P) Ltd. A-4/181, Sector-17, Rohini, Delhi-110085 AAACS1320E 13400 M/s Paras Infotech (P) Ltd. .....

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, Krishna Market, Bawana Road, Pooth Khurd, Delhi AAACT6039R 33400 M/s Akshay Sales Pvt. Ltd. 2A/65, Ground Floor, Ramesh Nagar, New Delhi-110 015 AAICA6630Q 16700 M/s G.C. Technology (India) Pvt. Ltd. B-348, IIIrd Floor, Hari Nagar, New Delhi. AABCG3647B 73400 M/s Arun Finvest Pvt. Ltd. 50/12, Ashok Nagar, New Delhi-110 018 AABCA3510H 83400 M/s Maestro Mktg. & Advg. Pvt. Ltd. A-4/181, Sector-17, Rohini, Delhi-110085 AACCM0826H 40000 M/s Polo Leasing & Finance Pvt. Ltd. A-24, IInd Floor, .....

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reads as under: TO WHOM SO IT MAY CONCERN This is confirm that we have made investment in shares, the particulars of which are given hereunder, our own declared sources. Name of Company No. of Shares : Allied Strips Ltd. No. of Shares : 26700 Equity Shares of ₹ 10/- each At a premium of ₹ 20/- per share Amount invested in Rupees : 8,01,000/- Particulars of Remittance : Cheque /DD/Pay Order No. : 453976, 453977 Dated : 29/01/2007 Amount : 4,00,000/- each and 1,000/- each Bank Particu .....

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rder Return declaring an income of ₹ 46,42,540/- was filed on 16.11.2007 and the same was processed u/s 143(1) at returned income on 21.02.2009. Subsequently, the case was selected for scrutiny. Notice u/s 143(2) & 142(1) along with detailed questionnaire was issued to the assessee. In response to this notice, Shri N.C. Jain, CA/AR attended from time to time and filed details as called for vide letter dated 07.08.2009, 20.08.2009, 31.08.2009, 09.09.2009, 23.09.2009 and 07.10.2009 (Deta .....

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urnished and the assessment order reveals that the Assessing Officer after examining the aspect of share application money received by the assessee through the issuance of the questionnaire and notices framed the assessment under Section 143(3) on 07.10.2009. The returned income was accepted and no addition was made on account of the share application money. 8. In CIT vs. Usha International Ltd. (2012) 348 ITR 485 (Delhi) (FB), a full bench of this Court held:- Re-assessment proceedings will be .....

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al assessment, though he had not recorded his reasons. 9. On 27.03.2014, the impugned notice under Section 148 of the Act has been issued. The reasons supplied to the assessee for re-opening of the case dated 24.03.2014 record as under:- M/s Allied Strips Pvt. Ltd. (AABCA0609D) Assessment in this case was completed u/s 143(3) at an income of ₹ 46,42,540/- on 07.10.2009. An information has been received from the Dy. Director of Income Tax (Inv.), Unit-V(2), New Delhi that a search & sei .....

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including premium (Rs.) Nominal Value (Rs.) M/s Monisha Granit Ltd. 2A/65, Ground Floor, Ramesh Nagar, New Delhi-110 015 31.03.2007 26700 20 2001000 10 M/s Monisha Impex Ltd. 2A/65, Ramesh Nagar, New Delhi-110 015 31.03.2007 66700 20 801000 10 M/s Bhalotia Agro Industries Ltd. WZ-241/S, Ground Floor, Inderpuri, New Delhi 31.03.2007 60000 20 1800000 10 M/s Elbee Portfolio Ltd. WZ-134, Plot No. 170, Vishnu Garden, New Delhi-110018. 31.03.2007 50000 20 1701000 10 M/s First Hi-Fin Ltd. 73, Triloki A .....

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-110018. 31.03.2007 56700 20 1701000 10 M/s U.P. Electricals Ltd. 2A/55, Ground Floor, Ramesh Nagar, New Delhi-110 015 31.03.2007 33400 20 1002000 10 M/s B. Fin-Lease Pvt. Ltd. 1/16 Ist Floor, Asaf Ali Road, New Delhi-110002 31.03.2007 43400 20 1302000 10 M/s Tashi Contractors (P) Ltd. Shop No. 20, Krishna Market, Bawana Road, Pooth Khurd, Delhi 31.03.2007 33400 20 1002000 10 M/s Akshay Sales Pvt. Ltd. 2A/65, Ground Floor, Ramesh Nagar, New Delhi-110 015 31.03.2007 16700 20 501000 10 M/s G.C. Te .....

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r, Pankha Road, New Delhi 31.03.2007 83400 20 2502000 10 M/s Rajkar Electri & Elect (P) Ltd. 5012, Ashok Vihar, New Delhi-110 018 31.03.2007 70000 20 2100000 10 M/s Shattarchi Finance & Leasing Ltd. 726, Pocket IIIrd Sector-19, Dwarka, New Delhi-110045. 31.03.2007 15900 20 477000 10 Total 1000000 3,00,000/- The DDIT (Inv.) has further submitted that the investors have been verified from ITD and none of them reflect receipt of nay dividend on the investment made by them. The returns decla .....

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iness and genuineness of the above investors remained unverified I therefore reason to believe that an income to the extent of ₹ 3,00,00,000/- has escaped assessment and to assessee the income mentioned above and to verify the genuineness/creditworthiness of the above investors. I propose to issue notice u/s 148 of the Income Tax Act, 1961 for the assessment year 2007-08. Therefore, I have reason to believe that THE ASSESSEE COMPANY M/s Allied Strips Limited has concealed the particulars o .....

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. It requires the petitioner to give a list, source, genuineness, identity of the share holders along with confirmation copies of the ledger account of the party including confirmation of the mode, date, address and acknowledgement of return, etc. from the said party along with source and relevant bank entries. The said information was provided by the assessee. After receipt of the said information, Assessing Officer did not think it fit to make an addition and, under these circumstances, no add .....

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he material particulars necessary for assessment has not been made out. 13. Perusal of the reasons for initiating re-assessment shows that there is not even an allegation that there has been failure on the part of the petitioner/assessee to fully and truly disclose all the material particulars necessary for re-assessment. 14. In Haryana Acrylic Manufacturing P. Ltd. Co. Vs. CIT 2009 (308) ITR 38 (Delhi), this Court held as under:- 29. In the reasons supplied to the petitioner, there is no whispe .....

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