9911796707
TMI Blog2016 (1) TMI 1440X X X X Extracts X X X X X X X X Extracts X X X X ..... ncome can be subjected to the provisions of the I.T. Act. Reopening of assessment u/s 147 - HELD THAT:- We are in agreement with the findings of ld. CIT(A) that the issue under consideration was such that prima facie it was possible to entertain a view that the assessee had wrongly claimed capital loss on account of calculation of shares and thereby resulting into escapement of income. Therefore, we endorse the finding of ld. CIT(A) in holding that the AO had reason to believe that income had escaped assessment and he was within his competence to invoke the powers contained in section 147 to initiate reassessment of the income of the assessee. In the result, cross objection is dismissed. - ITA No. 1215/Del/2012, CO 155/Del/2012 - - - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in capital resulted in relinquishment of asset/ extinguishment of right in the shares held by the assessee in Daikin Airconditioning India Pvt. Ltd. 3. The AO, after considering the entire course of events, including the resolutions passed for cancellation of shares and after taking into consideration various decisions concluded that the portion of right which gets extinguished on cancellation in case of equity shareholder can be summarized as below: Rights in the company before cancellation or reduction Vis- -vis Rights in the company after cancellation or reduction. 4. He observed that in the present case there was neither relinquishment of the capital asset nor any rights in the capital asset. He, accordingly, held that i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , ld. counsel for the assessee fairly conceded that this issue has been decided by ITAT Special Bench Mumbai in the case of Bennett Coleman Co. Ltd. Vs. Addl. CIT(2011) 14 Taxmann.com 1 (Mum.), wherein in paras 28 29 it has been held as under: 28. We also find force in the submissions of the Ld. DR that as per sec.55(v) the cost the cost of acquisition of shares even after conversion etc. has to be taken with reference to the cost of original shares. Therefore, after reduction of share capital the cost of acquisition of the remaining shares would be reckoned with references to the original cost. Though at this stage assessee has not obtained any benefit because loss has been computed with reference to the actual cost, but, in futur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee's cross objection we are in agreement with the findings of ld. CIT(A) that the issue under consideration was such that prima facie it was possible to entertain a view that the assessee had wrongly claimed capital loss of ₹ 54,40,87,500/- on account of calculation of shares and thereby resulting into escapement of income. Therefore, we endorse the finding of ld. CIT(A) in holding that the AO had reason to believe that income had escaped assessment and he was within his competence to invoke the powers contained in section 147 to initiate reassessment of the income of the assessee. In the result, cross objection is dismissed. 11. In the result, departmental appeal is allowed and the cross-objection filed by the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
