9911796707
TMI Blog2023 (7) TMI 1403X X X X Extracts X X X X X X X X Extracts X X X X ..... the nature of Information Technology and Information Technology Enabled Services to Petitioner's group entities across the world. 2. By the present Petition, Petitioner is impugning, notices dated 10th March 2023 and 26th March 2023 issued under Section 148A(a) & (b) of Income Tax Act, 1961 ("the Act") for Assessment Year (AY) 2019-20, the impugned order dated 17th April 2023 passed under Section 148(d) of the Act rejecting the objections of Petitioner and upholding that it is a fit case to issue notice under Section 148 of the Act for re-assessment of income tax for AY 2019-20, the impugned re-assessment notice dated 17th April 2023 (issued on 20th April 2023) under Section 148 of the Act reopening the Assessment for AY 2019-20. 3. Duri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n (1) of section 148 of the Income Tax Act, 1961 (hereinafter referred as "the Act") any information flagged in the case of the assessee, for the relevant assessment year in accordance with Risk Management Strategy formulated by the Board from time to time constitutes the information with the Assessing Officer which suggests that the Income chargeable to tax has escaped assessment for the purpose of section 148 and section 148A of the Act. 2. In this regard, you are hereby informed that your case for A.Y. 2019-20 has been flagged by the Directorate of Income Tax (Systems) as High Risk non filer case under RMS (Risk Management System) in accordance with Risk Management Strategy formulated by the CBDT. 3. On verification of the informatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e. Thus, the assessee has failed to substantiate with evidence the transaction of purchase of share completely. 6 In view of the above mentioned information/facts and the provisions of section 148A(b) of the Act, you are hereby given an opportunity of being heard to show cause as to why a notice u/s. 148 of the Act should not be issued in your case for AY 2019-20. 7 You are hereby requested to furnish your reply/ explanation along with supporting documents/ evidence on or before 10.04.2023, whichever is earlier. The explanation/ reply furnished by you in response to this Show Cause Notice, will be considered at the time of passing of order u/s. 148(d) of the Act in your case." 5. Petitioner replied vide a communication dated 6th April ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat the JPMCH (assessee) had purchased 6935716 equity shares @5052/- of its Indian subsidiary JPMSIPL of Rs 35,03,92,37,232/-. JPMSIPL is not listed on recognized stock exchange.In order to verify veracity of share price of JPMSIPL, share valuation report was called for. The assessee has submitted share valuation report, but failed to submit supporting evidence for the actual and projected cash flow values, details of comparable used for determining rate, WACC and Beta coefficient used for determining the value of share. In order to verify source of investment, the assessee has not submitted any documentary evidence and simply stated that the investment in equity shares has been made from the income earned from JPMCH's investment outside In ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r officer as he/she deems fit. 9. The consequential notice dated 17th April 2023 issued under Section 148 is also hereby quashed and set aside. 10. Mr. Thakkar states that in view of what is stated in Paragraph No.9 of the impugned order which is quashed, he would take instructions if Petitioner wants to file any further documents and if Petitioner wished to, Petitioner would file the documents/submissions within two weeks from the date of this order being uploaded. 11. The officer to whom the matter is assigned by Respondent No.2 may pass such order as deemed fit in accordance with law. But before passing any such order Petitioner shall be given a personal hearing notice whereof shall be communicated at least 7 working days in advance t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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