Contact us   Feedback   Annual Subscription   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Extracts
Home List
← Previous Next →

2016 (7) TMI 540 - GUJARAT HIGH COURT

2016 (7) TMI 540 - GUJARAT HIGH COURT - TMI - Reopening of assessment - addition u/s 68 - Held that:- The petitioner has been vehemently contending that the amount received from the said three companies was only for the purpose of allotment of shares. It was only a loan which was received through Account Payee cheques and was also repaid during the same period relevant to the assessment year in question. - The Assessing Officer, while disposing of these objections, never disputed these fact .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

applicability of legal proposition would pale into insignificance. If the Assessing Officer was in a position to rebut the petitioner's factual assertions that no funds were received from these companies by way of share application money, the issue would stand on a different footing. However, no such rebuttal has come-forth in the order disposing of the petition or even in reply filed before us in response to the present petition. The petitioner has, on the other hand, produced supporting materi .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ONDENT : MR SUDHIR M MEHTA, ADVOCATE ORAL ORDER (PER : HONOURABLE MR.JUSTICE AKIL KURESHI) 1. The petitioner has challenged a notice dated 31.03.2015 issued by the respondent-Assessing Officer for reopening the petitioner's assessment for the assessment year 2008-09 in following factual background: 2. The petitioner is a company registered under the Companies Act. For the assessment year 2008-09, the petitioner had filed return of income on 12.09.2008 declaring nil income. The return was tak .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

is challenged in this petition. The Assessing Officer had recorded following reasons for issuing the notice: In this case, information has been received from the ADDl. DIT (Inv.) Surat vide confidential letter no. Addl. DIT(Inv)/Praving Jain/2014-15 dated 27.02.2015 regarding bogus accommodation entries provided by Shri Pravin Kumar Jain, entry provider, through bogus concerns operated by him. As per the information provided, it is seen that Shri Pravinkumar Jain, entry operator, was engaged in .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

on 29.11.2010 by the returned income as it is. Subsequently the case was reopened and reassessment u/s. 143(3) r.w.s. 147 of the Act was completed on 31.10.2014 by making addition on account of disallowance of additional depreciation on power plants. As per the information, during the previous year relevant to the assessment year concerned, assessee company had received share application money of ₹ 265.00 lakhs from Ansh Merchandise P Ltd. (Newplanet Trading Co. P. Ltd.) PAN No. AABCN8176E .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

s of bogus concerns Amount of transaction (in Rs.) Address of the beneficiary as per books of bogus concern AABCN8176E Ansh Merchandis e P Ltd (New Planet Trading Co. P Ltd.) AACCG4726A Gujarat Eco Textile Park Pvt. Ltd. 115.00 lakhs Plot No. 252/2, Luthra Mill Compound , GIDC Pandesara , Surat AAACO7955M Casper Enterprise P Ltd (Ostwal Trading (I) P Ltd.) AACCG4726A Gujarat Eco Textile Park Pvt ltd. 100.00 lakhs Plot No. 252/2, Luthra Mill Compound , GIDC Pandesara , Surat AABCJ6245N Duke Busin .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

f the Act. Thus, it is fit case for issuing notice u/s. 148 of the Act. 3. Upon receipt of the reasons, the petitioner raised detailed objections to the notice of reopening under a communication dated 24.12.2015. Such objections were, however, rejected by the Assessing Officer by an order dated 29.02.2016. 4. Appearing for the petitioner, learned counsel Mr. Soparkar submitted that the notice for reopening has been issued on totally incorrect factual premise. The reasons recorded totally wrong f .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

. Counsel submitted that the petitionercompany had never received any share application money from the said three companies. The petitioner had received loans through Account Payee cheques which were also repaid during the same accounting period. The Assessing Officer failed to respond to a specific objection raised by the petitioner in this respect. 5. On the other hand, Mr. Sudhir Mehta for the department submitted that various details were unearthed. Big scandal involving accommodation entrie .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

prise Pvt. Ltd. and ₹ 50 lacs from Duke Business Pvt Ltd. In this context, the petitioner had, in the objections raised before the Assessing Officer, averred as under: 2.2 Re-opening has been made on the basis of wrong , incorrect and general information requiring outright annulment. (i) At the very outset, we would like to bring to the kind notice of your honour the fact that the impugned re-opening has been made on the basis of absolute wrong information that there is bogus investment in .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ing (I) Pvt. Ltd.) AAACO7955M 1,00,00,000 3 Duke Business Pvt. Ltd. (Formerly JPK Trading (I) Pvt. Ltd.) AABCJ6245N 50,00,000 Total 2,65,00,000 (ii) It may be noted that in the year under consideration, the assessee company has received unsecured loan from the above 3 companies, which even stands repaid in the subsequent year by payment of interest and deduction of tax thereon and thus, there is no question of the assessee company receiving any bogus investment. (iii) Another important fact to b .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

eopening being made on absolute wrong information needs to be quashed outrightly as being illegal and bad in law. 7. In response to such objections all that the Assessing Officer in his order dated 29.02.2016 had to say: Rebuttal The share capital and share premium both are credit entries in the books. Both share capital and share premium are subjected to the test of identity, genuineness of transactions and creditworthiness of the investor under section 68 of the IT Act. The contention raised b .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version