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2016 (11) TMI 966

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..... . We notice that the Assessing Officer had raised certain queries regarding the series of investment by the petitioner in government or other securities. However, the question of transfer of shares of Krunal Oil Marketing Pvt. Ltd. by acquisition of preferential shares of Adani Infra was never examined by the Assessing Officer. Particularly, if we were to believe that there was no full and true disclosure with respect to acquisition of such shares of Krunal by the petitioner and the cost thereof and other relevant details, any inquiry by the Assessing Officer in this respect would not shut out the further scrutiny. - Decided against assessee - SPECIAL CIVIL APPLICATION NO. 3447 of 2016 - - - Dated:- 26-7-2016 - MR. AKIL KURESHI AND MR .....

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..... nting to ₹ 21,99,99,450/being acquisition of 133333 preferential shares of Adani Infra Services Pvt. Ltd. (AISPL) as offered by AISPL on 01/01/2009 and accepted by the assessee on 20/01/2009 as against the money payable by AISPL to the assessee on account of purchase of 133333 preferential shares of KOMPL for assessee was not furnished and there is no reasons to assume that it was commanding any premium to the face value of ₹ 10/per share at the time of it being issued, looking to the fact that KOMPL is a small company trading in edible oil. Thus on taking the face value at ₹ 10/per share of KOMPL, the value of 133333 shares would work out at ₹ 13,33,330/( 133333 x 10) as against the sale value of ₹ 21,99,99,45 .....

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..... ssessee had transferred his investment in shares in Krunal Oil Marketing Pvt. Ltd. worth ₹ 21.99 crores into shares of Adani Infrastructure Services Pvt. Ltd. The assessee has not disclosed the cost of acquisition of shares in Krunal Oil Marketing Pvt. Ltd. Looking to the nature of the business and size of the company, there was no reason to believe that the shares of the company would have been issued at premium over and above the face value of ₹ 10 per share. The Assessing Officer had therefore reason to believe that the difference between cost of acquisition of shares in Krunal Oil Marketing Pvt. Ltd. and its sale value would be the capital gain in hands of the assessee, which was not subjected to tax. This happened because t .....

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..... ch had escaped assessment. 9. We have perused the investment account of the petitioner produced alongwith the return, a copy of which is produced by the respondent alongwith an affidavit dated 25.07.2016. This shows opening balance in Krunal Marketing's preference shares of ₹ 21.99 crores. Matching sum was shown as a credit during the year under consideration, a similar sum of ₹ 21.99 crores is shown at debit side in the Adani Infra preference share account. It can thus, be seen that the petitioner's investment of ₹ 21.99 crores in Krunal Oil Marketing Pvt. Ltd. was shifted to Adani Infra preferential shares during the said period. Thus, primafacie it would appear that the petitioner effectively sold the share .....

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..... ly at the time of reassessment and in absence of any clinching evidence to this effect, we cannot ignore or discard the petitioner's own accounts which suggests to the contrary. 12. We have perused the assessment records. We notice that the Assessing Officer had raised certain queries regarding the series of investment by the petitioner in government or other securities. However, the question of transfer of shares of Krunal Oil Marketing Pvt. Ltd. by acquisition of preferential shares of Adani Infra was never examined by the Assessing Officer. Particularly, if we were to believe that there was no full and true disclosure with respect to acquisition of such shares of Krunal by the petitioner and the cost thereof and other relevant det .....

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