9911796707
TMI Blog2012 (10) TMI 52X X X X Extracts X X X X X X X X Extracts X X X X ..... e has introduced share capital in assessment year 2004-05. During the assessment proceedings, for assessment year 2004-05 statements has been recorded on 11.12.2006 under oath of director. ON which information were given that total 70,000 shares were given on premium of Rs. 90/- per share. The allotment of shares is as under :- Name of the share holder company No. of shares Sreevan Overseas Limited 25,000 Nandan Mercantile 15,000 Presswell Industries 20,000 Sab Computing Pvt. Ltd. 10,000 In the assessment year 2005-06 these shares were subsequently buy back by the directors of the company at Rs. 10/- per share whereas same has been allotted at premium Rs. 90/-. It is also important fact to be mentioned that during these years company ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s. 90/- per share in the financial year 2002-03 is sold back to the Directors at par within short period. No other reason is given by the appellant to explain the steep fall in the price of the share within a short period. These facts viewed together lead to one conclusion only that the premium taken in the financial year 2003-04 was not genuine. Since the transaction taking premium above par is not genuine the capital receipt of premium is to be treated as unexplained cash credit. In view of the above the addition of Rs. 70,00,000/- u/s 68 is confirmed." 5. Against the above order, the assessee is in further appeal before us and have taken following grounds of appeal :- 1. That on the facts and in the circumstances of the case, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g the course of original assessment proceedings, the ld. Assessing Officer raised number of queries about proving the genuineness of the share application at a premium. The Assessing Officer also examined the director by issuing summons u/s 131 in connection with the share applications to various companies. Ld. Assessing Officer further reported the Chief Commissioner, Kolkata and the Commissioner, Raipur, on 1.6.2007 for investigation and forwarding the information. Subsequently, the ld. Assessing Officer reopened the assessment on the ground that the introduction of share capital has escaped assessment. 7. He further submitted that in the assessment proceedings the ld. Assessing Officer asked various details about the purchase of shares. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... whatever shares assessee has issued at a premium of Rs. 90/- have been bought back by the Directors of the assessee company at a discount of Rs. 90/-. This fact led to the Assessing Officer to believe that there was escapement of income, which was introduced in the form of share capital and share premium. Accordingly, assessment was reopened. As per our considered opinion, there was sufficient reason for reopening of assessment, in sofar as original assessment completed u/s 143(3) was reopened within a period of three years. From the record, we found that statement of Director of assessee company was recorded, wherein it was stated that shares of Rs. 10/- which was issued at a premium of Rs. 90/- were purchased back by the Directors at a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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