9911796707
TMI Blog2022 (4) TMI 344X X X X Extracts X X X X X X X X Extracts X X X X ..... the AO for issuance of notice will not be applicable to the petitioner who is a company. For issuance of notice u/s 148 there should be tangible material and mandatory compliance of Section 147 - Proceedings of reassessment has been initiated against company after lapse of 4 years of submission of return, which is not in dispute. Under first proviso to Section 147 of the I.T. Act, for starting the reassessment proceedings after lapse of 4 years, AO has to record his conclusion that there was failure on the part of assessee in not disclosing fully and truly all material facts necessary for assessment of that particular assessment year, which is not appearing from the reading of the Annexure i.e. reasons for issuance of notice. Reason ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt Year 2014-15, petitioner s company had issued 25,000 shares in the name of Amarnath Agrawal and Smt. Ramadevi Agrawal at face value of ₹ 100/- per share. The sale of share has been disclosed in their return. After receiving notice under Section 142(1) of the I.T. Act, petitioner has submitted details as required to be submitted by petitioner under notice. Petitioner vide letter dated 22.12.2016 had very clearly mentioned that due to losses suffered by Steel Industry and no buyers in the market, company was facing paucity of funds and therefore, shares have been allotted on its face value. After considering the reply to notice, final assessment order under Section 143(3) of the I.T. Act has been passed. He contended that notice issu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r Section 56 of the I.T. Act. 4. I have heard learned counsel for the parties. 5. The main thrust of counsel for petitioner for challenging notice under Section 148 of the I.T. Act is that provisions under Section 56(2)(vii)(c)(ii) of the I.T. Act will not be attracted, in the fact of the case, I find it appropriate to extract relevant provisions of Section 56(1) and (2) along with provisions under Section 56(2)(vii)(c)(i) (ii) of the I. T. Act for ready reference : 56. Income from other sources.- (1) Income of every kind which is not to be excluded from the total income under this Act shall be chargeable to income-tax under the head Income from other sources , if it is not chargeable to income-tax under any of the heads speci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce of Section 147 of I.T. Act. Proceedings of reassessment has been initiated against company after lapse of 4 years of submission of return, which is not in dispute. Under first proviso to Section 147 of the I.T. Act, for starting the reassessment proceedings after lapse of 4 years, Assessing Officer has to record his conclusion that there was failure on the part of assessee in not disclosing fully and truly all material facts necessary for assessment of that particular assessment year, which is not appearing from the reading of the Annexure i.e. reasons for issuance of notice. 7. Considering the aforementioned facts and circumstances of the case, reason assigned for issuance of notice and provisions mentioned therein, in the opinion of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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