9911796707
TMI Blog2018 (2) TMI 1219X X X X Extracts X X X X X X X X Extracts X X X X ..... ad filed the return of income. On 22.07.2010, such return was accepted without scrutiny. To reopen such assessment, impugned notice came to be issued. The Assessing Officer had recorded following reasons before issuing the notice: "The ITO, Ward 8, Vapi has forwarded the information received from the DCIT, Central Circle6( 3), Mumbai that the assessee M/s Sarjan Chemicals had transferred 1,20,000 shares of M/s UPL & 20,000 shares of M/s UEL, whose market value on the date of transfer was of Rs. 1,89,84,000/, by way of transfer deed dated 26/02/2010 without any consideration to M/s Nerka chemicals Pvt. Ltd., during the F.Y. 200910, relevant to the A.Y. 2010-11. During the assessment proceedings in the case of M/s Nerka Chemicals Pvt. Ltd. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t therefore requires verification. From the above, it is clear that the assessee has failed to disclose fully and truly all material facts necessary for his assessment within the meaning of section 147 of the Act. Thus, the assessee's case falls within the explanation 2(b) to section 147 of the I. T. Act, which states "where a return of income has been furnished by the assessee but no Assessment has been made and it is noticed by the Assessing Officer that the assessee has understand the income or has claimed excessive loss, deduction, allowance or relief in the return." In view of the above facts, I am therefore satisfied and have reason to believe that income chargeable to tax of Rs. 1,89,84,000/has escaped assessment within the me ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... making following observations: "11. Quite apart from this, even on greater scrutiny of the statutory provisions, we find that the transaction in question did not invite any tax liability on the petitioner. Section 45 of the Act, as is well known, pertains to capital gains. Subsection (1) thereof in particular provides for charging of tax on any profit or gain from transfer of capital assets as deemed income of the assessee for the previous year in which transfer took place. Section 47 of the Act pertains to transaction not regarded as transfer. Subclause (iii), which is relevant for our purpose reads as under: "47. Nothing contained in section 45 shall apply to the following transfers :- i.xxx xxx ii.xxx xxx (iii) any transfer o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Act pertaining to capital gain would not apply. 12. An attempt was made by the Assessing Officer to apply further to proviso to section 48 of the Act. Section 48 of the Act pertains to mode of computation. It essentially provides that the income chargeable under the head Capital gains shall be computed, by deducting from the full value of the consideration received or accruing as a result of the transfer of the capital asset the following amounts, namely, expenditure incurred wholly and exclusively in connection with such transfer, and the cost of acquisition of the asset and the cost of any improvement. Further proviso to section 48 of the Act which the respondents want to press into service reads as under: "Provided also that w ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
