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TMI Blog2018 (10) TMI 1610X X X X Extracts X X X X X X X X Extracts X X X X ..... nly has to demonstrate formation of a reasonable belief on the basis of the material on record that income chargeable to tax had escaped assessment. He does not have to establish beyond dispute that invariably, the addition would be made. The scrutiny of the Court, at that stage also, is limited. The petitioner’s contention that even if he may be holding more than 10% of the shares of the Company, he did not have less than 10% voting rights, can be examined in the assessment proceedings, for which, we are not inclined to quash the Notice itself. - Decided against assessee. - R/SPECIAL CIVIL APPLICATION NO. 16719 of 2018 - - - Dated:- 29-10-2018 - MR AKIL KURESHI AND MR UMESH TRIVEDI For The PETITIONER : MR KETAN H SHAH(2705) AND ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ome of ₹ 18,23,340/after making disallowance of interest expenses of ₹ 16,95,292/. 2. Brief details of information collected / received / found by the A.O.: In this case, an information has been received from DCIT, Circle2( 1)(2), Surat on 10.10.2017. As per information received in this office, the assessment proceedings in the case of M/s. Shantai Exim Limited for A.Y. 201314 have been finalized on 31.03.2017. The assessee, Shri Vasudev F. Savlani, is one of the Director of the company M/s. Shantai Exim Ltd. and he is holding shares of company M/s. Shantai Exim Ltd. in excess of 10% when shareholding is combined to his individual capacity as well as Karta of HUF. During the year under consideration, the loan of ₹ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... antai Exim Ltd. has shown Income for A.Y. under consideration of ₹ 1,41,70,520/under normal provisions and of ₹ 1,49,69,026/under Section 115JB of the Act. The assessee company is having accumulated profit of RS.3,73,92,978/as on 31.03.2012, i.e. on the first day of period under assessment proceedings. The assessee is having 912410 shares of the company M/s. Shantai Exim Ltd., i.e. 10.32% and HUF of the assessee is having 2309922 shares of the Company M/s. Shantai Exim Ltd. i.e. 26.13% shareholding. The asessee being a shareholder in the individual capacity and in the capacity of Karta of HUF, is having more than 10% of voting rights in the capacity of Individual and Karta of HUF. By virtue of Section 2(22)(e) of the Act, the as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he above, provisions of clause (c) of explanation 2 to Section 147 are applicable to the facts of this case and the Assessment Year under consideration is deemed to be a case where income chargeable to tax has escaped assessment. This case is within four years from the end of the Assessment Year under consideration. Hence, necessary sanction to issue the Notice u/s.148 has been separately from the Joint Commissioner of Incometax as per the provisions of Section 151 of the Act. 3. The petitioner raised detailed objections to the Notice of reopening under letter dated 20.06.2018. Such objections were, however, rejected by the Assessing Officer by an order dated 24.09.2018. Hence, this petition. 4. The Notice of reopening is pas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessment, the Asesssing Officer cannot be estopped from examining this question provided, of course, that he had reason to believe that income chargeable to tax had escaped assessment. In this context, he had cited reasons why, prima facie, applicability of Section 2(22)(e) of the Act arises. It would be for the assessee to contest the additions during the course of assesment proceedings. At this stage, we would not examine the merits or demerits of any proposed additions, which would be in the realm of assessment. As is well settled, at the stage of Notice for reassessment, the Assessing Officer only has to demonstrate formation of a reasonable belief on the basis of the material on record that income chargeable to tax had escaped assessme ..... X X X X Extracts X X X X X X X X Extracts X X X X
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