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TMI Blog2016 (7) TMI 66X X X X Extracts X X X X X X X X Extracts X X X X ..... in the final order of assessment. Without there being anything additional on record, it would therefore, not be permissible for the Assessing Officer to reopen the assessment on the very same material. Additionally, we may recall that the notice was issued beyond a period of four years from the end of relevant assessment year. There is not even a hint from the reasons recorded that the assessee failed to disclose truly and fully all materials. Even on this ground, notice must fail.- Decided in favour of assessee - SPECIAL CIVIL APPLICATION NO. 3323 of 2016 - - - Dated:- 27-6-2016 - MR. AKIL KURESHI AND MR. A.J. SHASTRI, JJ. FOR THE PETITIONER : MR B S SOPARKAR, ADVOCATE FOR THE RESPONDENT : MR NITIN K MEHTA, ADVOCATE ORAL ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y is subsidiary of Prism Finance Limited. The assessment submissions include Annual Reports of Sintex industries Limited and also of Prism Finance Limited for the F.Y. 200809. The company has shown dividend income of ₹ 29,97,525/- in its profit and loss account and its expenditure side comprises mainly of Short term capital loss of ₹ 23,89,90,320/- being application money written off (forfeiture). After debiting legal professional charges and General Charges of ₹ 23535 and ₹ 5110/- respectively. the company has worked out loss of ₹ 23,60,21,440/- . 4. As regards to the short term capital loss of ₹ 23,89,90,320/- , during the assessment assessment proceedings, the assessee company had relied upon the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g equity shares, the Warrant holder shall not be entitled to any rights as shareholder of the company with respect to the equity shares into which the Warrants are exercisable including the right to vote, to receive dividends etc. Since the assesses had not exercised the option for conversion of the remaining warrants. it gets hit by the above condition to the offer. The assesses company had not gained any right by virtue of the application money therefore, its forfeiture cannot be regarded as transfer of capital asset u/s. 2(47) of the Act. Hence the short term capital gain requires to be disallowed. In view of the above, l have reason to believe that due to incorrect claim of short term capital loss of ₹ 23.89,90,320/- . inco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent and as per SEBI guidelines. The market price of equity shares of Sintex Industries Limited was stood at ₹ 70.20 (Approx.) per equity shares in the Month of March, 2009. Therefore, the assessee company has not exercised option for conversion of warrants in equity shares. The assessee company has also intimated the Sintex Industries for not exercising the option for conversion of warrants in equity shares vide letter dtmarch 20,2009 and copy of the same is attached as Annexure2 for your kind perusal. 9. Justification for claim of the amount as Capital Expenses Please note that during the year under consideration, the Assessee Company has written off advances for warrants amounting to ₹ 23,89,90,320/- in books of accoun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... same material. Additionally, we may recall that the notice was issued beyond a period of four years from the end of relevant assessment year. There is not even a hint from the reasons recorded that the assessee failed to disclose truly and fully all materials. Even on this ground, notice must fail. 8. The petition is therefore, dismissed. 1. Through this note, it is pointed out to us that in our order dated 27.06.2016 passed in special civil application no.3323 of 2016 in para 8 it is wrongly mentioned as The petition is therefore, dismissed. instead of allowing the petition. The error is ordered to be corrected. Para 8 of the order shall read as under: The petition is therefore, allowed. 2. Note disposed of. - - TaxT ..... X X X X Extracts X X X X X X X X Extracts X X X X
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