9911796707
TMI Blog2018 (12) TMI 1349X X X X Extracts X X X X X X X X Extracts X X X X ..... such dividend was payable, obviously it was not the duty of the petitioner to have made any such reference in the return. Whatever the validity of the Assessing Officer's contention regarding such dividend, surely, he cannot reopen the assessment beyond the period of 4 years from the end of the relevant assessment year, without there being any element of lack of true and full disclosure on the part of the petitioner. Only on this ground, the impugned notice is set aside. - Decided in favour of assessee - WRIT PETITION NO. 3619 OF 2018 - - - Dated:- 22-12-2018 - AKIL KURESHI M.S. SANKLECHA, JJ. Mr. F.V. Irani a/w Mr. Niraj Sheth I/b Mr. Atul Jasani for the petitioner Mr. Charanjeet Chanderpal a/w Mr. Sigmund Gracias a/w Ms. P ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ear the assessee has bought back 9,05,161 shares of the company for a total consideration of ₹ 11,94,81,252/. The shares were bought back on a premium of ₹ 122/per share in addition to the face value of the share. The premium paid amounting to ₹ 11,04,29,642/towards buy back of shares was reduced from the General Reserve Account. However no dividend has been distributed by the assessee inspite of the fact that the accumulated profit at the assessee company as on 31.03.2011 stands up at ₹ 47,01,89,864/. The assesses company has purchased the shares from the holding company M/s. Firstsource Solution Ltd. By way of buy back the share holding has not been diluted. The profit making subsidiary by way of not paying di ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the company has offered a buyback offer which is accepted by the holding company and therefore I have reason to believe that the income of ₹ 11,04,29,642/chargeable to tax has been under assessed. 3. On the basis of above findings in above para no.2, I have reason to believe that income of the assessee has escaped assessment. By not declaring ₹ 11,04,29,642/as Dividend as discussed above, the assessee had not disclosed fully and truly all material facts necessary for its assessment. 4. In this case a return of income was filed for the year under consideration and regular assessment u/s 143(3) rws 92CA was made on 26/03/2015, Since, 4 years from the end of the relevant year has expired in this case, the requirement of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dited P L A/c and balance sheet or other evidence as mentioned above, the requisite material facts as noted above in the reasons for reopening were embedded in such a manner the material evidence could not be discovered by the AO and could have been discovered with due diligence, accordingly attracting provisions of Explanation I of Section 147 of the Act. It is evident from the above discussion that in this case, the issue under consideration was never examined by AO during the course of regular assessment. This fact is corroborated from the contents of notices issued by AO u/s 143(2)/142(1) and order sheet recorded during the 143(3) proceedings. It is important to highlight here that material facts relevant for the assessment proce ..... X X X X Extracts X X X X X X X X Extracts X X X X
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