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

2016 (11) TMI 966 - GUJARAT HIGH COURT

2016 (11) TMI 966 - GUJARAT HIGH COURT - [2016] 387 ITR 639 - Reopening of assessment - capital gain has escaped assessment - share transaction inflated - Held that:- It is an admitted position that the petitioner has not placed on record the cost of acquisition of shares of Krunal Oil Marketing. The nature of transaction of transfer of investment from Krunal Marketing's preference shares from Adani Infra preferential shares was immediately not visible from the declaration made by the petitioner .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

amined 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. A.J. SHASTRI, JJ. FOR THE PETITIONER : MR SN DIVATIA, A .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

turn of income declaring total income of ₹ 13.19 lacs (rounded off). Such return was taken in scrutiny. The Assessing Officer passed the order of assessment on 23.12.2011 under section 143(3) of the Act determining total income of assessee at ₹ 14.33 lacs (rounded off). 4. To reopen such assessment, the respondent issued the impugned notice, which as can be seen, was done beyond the period of four years from the end of relevant assessment year. To issue the notice, he had recorded fo .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ces 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 ͅ .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ssary approval under the provisions of the Act to issue notice u/s. 148 of the Act may kindly be accorded in this case. 5. The petitioner upon being supplied such reasons, raised objections under letter dated nil. Such objections were however rejected by the respondent by an order dated 22.02.2016. Hence, this petition. 6. Taking us through the materials on record, counsel for the petitioner raised following contentions. I. The notice of reopening has been issued beyond the period of four years .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

essment. 7. On the other hand, learned counsel Shri Nitin Mehta for the department opposed the petition contending that the assessee 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 o .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

iginal assessment. 8. Having thus heard learned counsel for the parties and having perused documents on record, we may examine the reasons recorded by the Assessing Officer minutely. As per these reasons, assessee had shown a total investment of ₹ 21.99 crores for acquisition of 1,33,333 preference shares of Adani Infrastructure Services Pvt. Ltd. as offered by the company on 01.01.2009, which was accepted by the assessee on 20.01.2009, as against the money payable to the assessee on accou .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

Thus, according to the Assessing Officer, adopting ₹ 10 per share of Krunal Oil Marketing Pvt. Ltd. for 1,33,333 shares would workout to a cost of acquisition at ₹ 13,33,330/. As against this, the assessee received ₹ 21.99 crores by way of sale value of these shares. The difference between the two i.e. ₹ 21.86 crores would be the capital gain which had escaped assessment. 9. We have perused the investment account of the petitioner produced alongwith the return, a copy of .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ential shares during the said period. Thus, primafacie it would appear that the petitioner effectively sold the shares of Krunal Oil Marketing Pvt. Ltd. for acquiring the shares of Adani Infra which were alloted to the petitioner as per the above noted transfer arrangement between the company and the petitioner. If that be so, then the question of ascertaining whether the petitioner had earned any capital gain upon sale of share of Krunal Oil Marketing Pvt. Ltd. would arise. 10. In this context, .....

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