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TMI Blog2018 (3) TMI 2043X X X X Extracts X X X X X X X X Extracts X X X X ..... rom unsecured loans into share capital of the company with premium. When the advances were squared up on the same date, nothing remained outstanding at the end of the day, much less at the end of the financial year. There was no question of such amounts being unsecured loans of the company which stood converted into share capital with premium. In fact, accounts of the assessee company for the subsequent assessment year which have been produced on the record would show that the share premium shown to have been received was from one Vikas TV Alliance Private Limited and it is this Vikas TV Alliance Private Limited which had advanced unsecured loan during the said period. If the Assessing Officer had reason and therefore wanted to target this ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... OR THE RESPONDENT(S) NO. 1 MR M.R BHATT, SR ADVOCATE WITH MRS MAUNA M BHATT FOR RESPONDENT(S) NO. 1 NOTICE NOT RECD BACK FOR THE RESPONDENT(S) NO. 1 ORDER ( PER : HONOURABLE Mr. JUSTICE AKIL KURESHI ) This petition is filed by the assessee challenging a notice dated 30th March 2017 issued by the respondent-Assessing Officer to reopen the petitioner s assessment for the assessment year 2010- 2011. In order to do so, he had recorded the following reasons : The assessee company has filed its return of Rs. 2,86,520/- for the AY 2010-11. As per records, the assessee I.e, Gujarat Television Private Limited has received huge amounts from various companies in various dates and repaid the same on the same date on which date the same was been receive ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urn of income of Rs. 2,86,520/-. In the FY 2010-11, it is seen that the company s share capital has increased substantially from Rs. 1,00,000/- to Rs. 1,90,00,000/- and the Reserves and Surplus was increased to Rs. 5,23,72,602/- which includes the security premium a/c of Rs. 7.1 cr. The company has shown unsecured loans at Rs. Nil in the balance sheet. During the year, the company has shown income from its operations at Rs. 3.62 cr and other income at Rs. 1.03 cr. The company has filed its return of income for Rs. Nil claiming loss of Rs. 2.09 cr. for the AY 2011-12. From analyzing the return of income of the above companies who has extended unsecured loans to GTPL, it is observed that these companies do not have the creditworthiness to adv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Officer s formation of belief that the income chargeable to tax has escaped the assessment. We have reproduced the reasons recorded by the Assessing Officer. Gist of such reason is that during the year under consideration, the Assessing Officer found that as many as eight different companies had made unsecured advances to the petitioner-Company, total of which comes to Rs. 4.82 Crores. All these loans were squared up in the accounts of the company on the same day. The Assessing Officer also refers to the unsecured loan of Rs. 4.99 Crores [rounded off] shown in the accounts of the company for the following assessment year. As analysis of the return of income of the above referred eight companies showed that such companies did not have the c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r had reason and therefore wanted to target this transaction, the issue would have been examined differently. However, apparently, the Assessing Officer seems to have linked the unsecured loans of Rs. 4.82 Crore shown in the accounts book of the Company received from eight different companies to the action of the company of convering unsecured loans in the later year. There is absolutely no link between the two sets of transactions. The Assessing Officer seems to have proceeded completely on misapplication of facts. Counsel for the Revenue, however, vehemently contended that this was a simple case of unaccounted credit in the accounts of the company when it is found that the later on these companies did not have the creditworthiness, provis ..... X X X X Extracts X X X X X X X X Extracts X X X X
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