TMI Blog2021 (9) TMI 6X X X X Extracts X X X X X X X X Extracts X X X X ..... es, no incriminating material was seized rather AO initiated the reopening on the basis of information and copy of sweat equity share agreement dated 28.01.2008 - assessee is neither an employee nor a Director of M/s. Rockland Hospital Ltd. and his wife is only a housewife - as per sweat equity share agreement, there is a lock-in period of three years and these shares would vest in the assessee only after lock-in period. It is also not in dispute that in case of Rajat Shubra Chatterjee who was also allottee of 1000 shares of ₹ 10 each at the premium of ₹ 190 each by M/s. Rockland Hospital Ltd., the coordinate Bench of the Tribunal in RAJAT SHUBRA CHATTERJI [ 2016 (7) TMI 258 - ITAT DELHI] quashed the reassessment initiated on t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee at NIL consideration recorded in the books and observed during the post search investigation would fall within the meaning of word belongs to , as provided us 153C of the Act. 2. Briefly stated the facts necessary for adjudication of the controversy at hand are : Assessee filed return of income on 25.07.2009 at the income of ₹ 1,09,750/-. M/s. Rockland Hospital Ltd. group of company was searched under section 132 of the Income-tax Act, 1961 (for short the Act ) on 06.09.2011, in which assessee is neither an employee nor Director. However, assessee was issued 3,50,000 sweat equity shares of ₹ 10 each with premium of ₹ 190 per share without any consideration. 3. AO initiated the reassessment proceedings on the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ized Representatives of the parties to the appeal, gone through the documents relied upon and orders passed by the revenue authorities below in the light of the facts and circumstances of the case. 6. Undisputedly, 3,50,000 sweat equity shares of ₹ 10 each with premium of ₹ 190 per share were issued to the assessee by M/s. Rockland Hospital Ltd. in accordance with the agreement dated 28.01.2008. It is also not in dispute that during search operation conducted u/s 132 of the Act in M/s. Rockland Hospital Ltd. group of cases, no incriminating material was seized rather AO initiated the reopening on the basis of information and copy of sweat equity share agreement dated 28.01.2008. It is also not in dispute that assessee is neit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... AT in the above decision held that since the reassessment was initiated on the basis of incriminating material found during search in the case of third party i.e. M/ s Rockland Hospital Limited, the provisions of 153C were applicable in this case and not the provisions of section 147/148 for this reason. The reassessment was quashed and proceedings u/s 147/148 were treated as void-ab-initio. The quantum involved in the said case and also in the decisions of CIT (A) in other cases were much smaller and, therefore, there is a possibility that these decisions have not been contested by the Revenue further. From a perusal of number of shares allotted, reproduced in assessment order, it is noticed that the shares allotted to the appellant and hi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... AR for the assessee also placed on record order passed by the coordinate Bench of the Tribunal in ITA No.4054/Del/2015 CO No.166/Del/2018 in case of Shri Umesh Upadhyay order dated 19.03.2019 , discussed by the AO in para 7.8 of the assessment order, in which reassessment was initiated on the basis of same third party incriminating material qua issuance of 100,000 equity shares with face value of ₹ 10 having premium of ₹ 190 per share as sweat equity shares by M/s. Rockland Hospital Ltd. whereby quashing of reassessment by ld. CIT (A) was upheld. 10. It is also undisputed fact that Hon ble Delhi High Court vide order dated 26.02.2010 in a company petition no.399/2009 in the matter of The Companies Act, 1956 and Petition u ..... X X X X Extracts X X X X X X X X Extracts X X X X
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