9911796707
TMI Blog2024 (1) TMI 313X X X X Extracts X X X X X X X X Extracts X X X X ..... ected during survey u/s 133A conducted on 04.03.2020 but for the reason that the case of the petitioner is selected under the risk management strategy. Issue of shares on the basis of valuation made by the accountant and not by the merchant banker - We found that though in the Shares Subscription Agreement and the Share Holders Agreement executed on 22.02.2018, the valuation report of the CA valuing the shares as on 15.02.2018 had already been given but admittedly the shares had been issued by the petitioner prior and after 24.05.2018, whereas as per Section 56(2)(viib) of the Act and Rule 11UA of the IT Rules, after 24.05.2018, valuation of the shares is required to be determined by the merchant banker. We are of the opinion that w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion, are that the petitioner, a private limited company is engaged in the business of manufacturing/trading of papad, namkeens, snacks and other associated derivatives of such products. 3. A notice dated 03.03.2023 was issued to the petitioner under Section 148(b) of the Act, whereby it was asked to show cause why a notice under Section 148 of the Act should not be issued on the basis of information available, which suggests that the income chargeable to tax has escaped assessment for the relevant assessment year 2019-20. The petitioner was required to file reply to the said notice on or before 13.03.2023. 4. The petitioner submitted its reply on 12.03.2023, however, requested to provide time to furnish further clarification/ informa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which suggests the income chargeable to tax has escaped assessment, is the survey conducted on 04.03.2020 though he has no authority to take into consideration any information gathered during survey conducted prior to 1st of April, 2021. It is, therefore, argued that the order dated 31.03.2023 issued by the assessing officer under Section 148A (d) of the Act and consequential notice under Section 148 of the Act are without jurisdiction and are liable to be quashed and set aside. 7. Learned counsel for the petitioner has further argued that another ground for initiating proceedings against the petitioner was that the petitioner-company issued shares on the basis of valuation made by the accountant and not by the merchant banker. It is su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act. It is argued that the case of the assessee for the relevant assessment year was selected under risk management strategy which is formulated by the Board on 20.02.2023. It is wrong to contend that the case of the assessee is selected on the basis of information collected during survey conducted on 04.03.2020 under Section 133A of the Act. Learned counsel has argued that in para 2 of the notice dated 03.03.2023 issued under Section 148(b) of the Act, it is clearly mentioned that case of the petitioner is selected on the basis of information flagged in insight under the head High Risk CRIU/VRU for assessment year 2019-20. The case is flagged as CRIU/VRU High Risk in Insight Portal in accordance with the risk management. Learned counsel fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... MGT-14 of 257732 shares and the form was also bearing the same digital signature, date and time. Noting this fact, the petitioner was specifically asked why it submitted forged MGT-14 of 257732 shares but the response of the petitioner was not satisfactory. 13. Learned counsel has submitted that from the above facts and circumstances of the case, it is clear that sufficient reasons or material was available with the assessing officer for reopening the case of the petitioner. Learned counsel for the respondents has, therefore, submitted that there is no merit in this petition and the same is liable to be dismissed. 14. Heard learned counsel for the parties. 15. The petitioner is contending that as per Explanation 2(ii) of Section 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gement. The order passed by the assessing officer under Section 148A(d) also speaks that case of the petitioner is flagged as CRIU/VRU High Risk case in Insight Portal in accordance with the risk management. 18. In view of the above, we found that the assessing officer has not initiated the proceedings under Section 148 of the Act against the petitioner on the basis of information collected during survey under Section 133A conducted on 04.03.2020 but for the reason that the case of the petitioner is selected under the risk management strategy. 19. So far as second contention of the petitioner to the effect that it issued shares on the basis of valuation made by the accountant and not by the merchant banker is concerned, we found that ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
