9911796707
TMI Blog2019 (4) TMI 836X X X X Extracts X X X X X X X X Extracts X X X X ..... learned advocates for the respective parties, the matter is taken up for final hearing. 3. The petitioner in this petition has challenged the impugned notice dated 30.3.2018 issued under section 148 of the Income Tax Act, 1961 (hereinafter referred to as "the Act") seeking to reopen the assessment under section 147 of the Act for assessment year 2011-12. 4. The facts of the case stated briefly are that the petitioner-assessee filed its return of income for assessment year 2011-12 on 30.09.2011. Notice dated 28.06.2013 under section 143(2) of the Act was issued for scrutiny assessment. The petitioner filed submissions dated 21.08.2013,03.09.2013 and 13.03.2014 with necessary details supported by documents during original scrutiny assessmen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ares of face value of Rs. 10 each were issued to Ebrahimbhai Umraji Dalal. Shri Dalal was an NRI. All these shares were issued on 29.05.2010 as evidenced from share allotment Form-2 submitted to Registrar of Companies. Out of total shares 25,75,000 issued to Shri Dalal on 29.05.2010, 10,00,000 shares were issued at par and remaining 15,75,000 shares were issued for premium @ Rs. 161 per shares. The assessee got Rs. 25,35,75,000 as share premium from Shri Dalal. Remaining 42,50,000 shares were issued at par on same day to 16 other persons. This meant that on 29.05.2010, 52,50,000 shares were issued at par and 15,75,000 shares on the same day issued to Shri Dalal for premium @ Rs. 161 per shares. Shri Dalal was also issued 10,00,000 shares at ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has been prepared during the year. All the expenses incurred during the year have been charged to Pre-operative expenses to be capitalized upon commencement of commercial leasing of plot as per SEZ policy". [2.2] It is however noticed that profit and loss account was prepared and subsequent note on account under the head revenue recognition mentions that all administrative and incidental expenses has been debited to profit and loss account. [2.3] It was noticed from P/L and computation of income that assessee had only income from other sources of Rs. 29,80,016/- as against which expenditure of Rs. 1,03,37,505/- (Administrative and selling expenses : Rs. 69,57,314, Employees cost : Rs. 32,35,300 & Financial charges: 1,44,982 was adjust ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 26.03.2018" 6. On receipt of above reasons, the petitioner on 12.07.2018, requested respondent for inspection of case records which was granted by the respondent on 24.07.2018. The petitioner thereafter, on 08.08.2018 filed objections to issuance of notice under section 148 of the Act for reopening of assessment for A,.Y. 2011-12, which was rejected by the respondent vide order dated 13.08.2018. The petitioner has therefore filed this petition challenging the impugned notice. 7. Heard Mr. Darshan Patel, learned advocate for the petitioner and Mrs. Mauna Bhatt, learned senior standing counsel for the respondent. 8. The learned advocate for the petitioner submitted that the reasons with regard to issuance of 25,75,000 shares to Shri Ebra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essee to furnish fully and truly all material facts necessary for assessment. 9. With regard to the second ground for reopening the assessment, viz., pre-operative expenses, the learned advocate for the petitioner submitted that the pre-operative expenses are duly reflected in the profit and loss account. It was submitted that during the course of assessment, the petitioner filed reply dated 3.9.2013 and furnished details with regard to pre-operative expenditure as per requirement of point no.32 in the notice under section 143(2) of the Act to the effect that no pre-operative expenses were debited to the profit and loss account. Expenses related to pre-operative expenses have been transferred under the head "preoperative Account (Assets)" ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to 16 persons, wherein the name of Shri Dalal does not appear. Further, on 29.5.2010, only 15,75,000 shares are issued at premium to Shri Dalal. Therefore, on the face of it, the reasons recorded by the Assessing Officer are without application of mind and are not germane to the material on record. As far as the reasons recorded by the Assessing Officer regarding pre-operative expenses are concerned, the same is already considered by the Assessing Officer at the time of assessment proceedings and therefore, the same would amount to reopening of assessment on a mere change of opinion. 12. On perusal of documents produced on record and upon consideration of the submissions made by the learned advocates appearing on behalf of both the partie ..... X X X X Extracts X X X X X X X X Extracts X X X X
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