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TMI Blog2016 (7) TMI 176X X X X Extracts X X X X X X X X Extracts X X X X ..... d information would be merely in the nature of change of opinion. In reasons recorded AO referred to some information received from CCIT as per which the assessee company had allotted shares at a high premium. Further, AO observed from the balance sheet of assessee-company that it had received share premium of 1.45 crores during the year under consideration. He therefore, recorded that “the assessee has not explained the nature of such credit and has failed to prove the genuineness and justification of huge share premium received in its books of accounts. Hence, such receipts need detailed verification.” The approach of AO cannot be approved. His entire focus is on share premium amount of 1.45 crores and without any tangible material on rec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iled a return of income on 5.9.2009 disclosing income of ₹ 4.43 crores (rounded off). Revised return was filed on 31.3.2011 of revised income of ₹ 2.54 crores (rounded off). The return of the company was taken in scrutiny. The Assessing Officer framed the scrutiny assessment under section 143(3) of the Income Tax Act, 1961 ("the Act" for short) on 30.12.2011. During such assessment, he noticed that the assessee had received share premium of ₹ 1.45 crores (rounded off) upon allotment of a total 16200 shares to five different persons. The Assessing Officer did not make any adjustment in the order of assessment concerning the share premium amount. 2. To re-open such assessment, the Assessing Officer issued impugned notice. H ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee to disclose fully and truly all material facts within the meaning of section 147 of the I.T.Act, 1961. 4. In order to bring to tax above mentioned escaped income, as well as any other income which may have escaped assessment, found during the course of proceedings, notice under section 148 is issued." 3. Upon receipt of reasons, the petitioner represented to the Assessing Officer on 27.1.2015 and pointed out as under: "3. Company has allotted 16200 shares on 31.3.2009 @ ₹ 1000/- including share premium ₹ 900/- per share. Total premium of ₹ 1,45,80,000/-(16200 shares * ₹ 900/- each shares) 4. We herewith give the working of book value of shares as per last audited balance sheet dated 31.3.2008 under: Ne ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in Mehta for the department submitted that the Assessing Officer has recorded proper reasons for issuing notice for re-opening. During the assessment proceeding, the assessee had not disclosed true and full facts. These aspects were noticed by the Assessing Officer upon information being supplied from CCIT, Mumbai under letter dated 18.3.2014. He therefore, submitted that the notice for re-opening was validly issued. 7. From the record, we notice that alongwith the return, the petitioner had filed audited accounts which included the balance-sheet in which following disclosures were made: Balance sheet as on 31st March, 2009 Particulars Schedule No. 31.3.2009 31.3.2008 Sources of Fund (a) Share capital A 7,440,000.00 5,820,000.00 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... AJTPP1790L 3700 3700000 16200 16,200,000.00 Annexure -8 :Details of share premium Sr. No. Name of allottee Address PAN No. No.of share Premiu m Amount 1 Chandrakant N Patel A/3, Sardar Patel Society, Nehru Road, Vile Parle (East), Mumbai- 400057 AABPP9011D 3500 900 3150000 2 Varsha Mahesh Patel B/8, Sardar Patel society,Nehru Road, Vile Parle (East), Mumbai 400057 AGVPP2093B 3000 900 2700000 3 Manish Chjandrakant Patel A/3, Sardar Patel society, Nehru Road, Vile Parle (East), Mumbai 400057 AGVPP3740K 3000 900 2700000 4 Yash Mahesh Patel B/8, Sardar Patel society, Nehru Road, Vile Parle (East), Mumbai 400057 AONPP3367F 3000 900 2700000 5 Suchit Chandrakant Patel A/3, Sardar Patel society, Nehru Ro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed. The contents of such information thus are completely unknown. Further the Assessing Officer then goes on to observe that on verification of the balance-sheet of the company, it was noticed that the company had received share premium of ₹ 1.45 crores and there is increase in share premium during the year under consideration. He therefore, recorded "the assessee has not explained the nature of such credit and has failed to prove the genuineness and justification of huge share premium received in its books of accounts. Hence, such receipts need detailed verification." The approach of the Assessing Officer cannot be approved. His entire focus is on share premium amount of ₹ 1.45 crores received by the assessee company. Without t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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