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TMI Blog2025 (2) TMI 1141X X X X Extracts X X X X X X X X Extracts X X X X ..... llegation which is levelled is a diversion of funds by Videocon to YK Securities, Top Most Investment and Glider Investment. Even if it were assumed to be correct that the Videocon had diverted funds and credit facilities provided by banks and financial institutions to third party entities, it would have at best and perhaps led to the deletion of any claims towards interest paid that may have been made by that entity.
We fail to comprehend how such a diversion of funds could have led to the formation of opinion that income taxable in the hands of Top Most Investment, YK Securities and Glider Investment could have escaped assessment. The notice u/s 148A (b) dated 31 March 2023 and the order u/s 148A (d) dated 20 April 2023 fails to provide any clue as to how such an opinion could have been formed even on a prima facie basis.
We find ourselves unable to sustain the impugned order of reassessment. X X X X Extracts X X X X X X X X Extracts X X X X ..... 39 crores is through transfer Rs. 1.25 crores is through RTGS and total debits during the same period amounted to Rs. 10. 68 crores, out of which Rs. 9.67 crores is through transfer and Rs. 1 crore is through RTGS. As per EDD, customer is in investments and financial services. Customer is operating from owned commercial premises with less than 500 square feet. On 07-10-2015, the account was credited with Rs. 1 crore through transfer from Shubhankar Nagar (022101514708 in this account funds were credited through transfer from VALUE IND. LTD) and on same day entice amount was debited through transfer to Trend Electronics Ltd (663805014486 in this account funds were debited through transfer to KHALIFA CONSTRUCTIONS P LTD). In view of usage of account for parking of funds account it is reported in STR" 3. Basis the above, the Assessing Officer [AO] has proceeded to observe as follows:- "2.1 In response, M/s. Top Most Investment Pvt Ltd stated that it has been amalgamated with Glider Investments Private Limited (named changed to Kunte & Drabu Consultants Pvt Ltd). On perusal of submission it is seen that there are high value transactions within the said entities without any rationale ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s 148 of the Act should not be initiated to bring to tax the above said amount of Rs. 37,53,91,921/-." 4. While neither the tabular statement nor the various allegations which form part of that notice give us even a broad indication of how the income which is alleged to have escaped assessment had been computed at INR 37,53,91,921/-, Mr. Pardiwalla, learned senior counsel appearing in support of the writ petition submits that it is perhaps the addition of the credit and debit entries which were reflected in the accounts of Top Most Investment, YK Securities and Glider Investment (the name by which the petitioner was earlier known). 5. As we read the parts of the notice under Section 148A(b) extracted hereinabove, the principal allegation appears to be that Videocon Industries Ltd. [Videocon] had utilised financing and credit facilities granted to it to provide interest free loans to various entities, including Top Most Investment, YK Securities and Glider Investment. It is these allegations which are set out in paragraph 3 (ii) of the Section 148A(b) notice. 6. Responding to the same, the petitioner appears to have asserted that the allegations as levelled were wholly vagu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ents for issue discussed above. In the light of the facts discussed in foregoing paragraphs, it is apparent that the assessee has no satisfactory explanation for these transactions to the tune of Rs. 37,53,91,921/-. These deposits in bank account and/or loan and advances are assets within the meaning of provisions of Section 149 {1) (b) as it is more than Rs. 50 Lakhs. Accordingly, it is concluded that this is a fit case for issuing notice u/s 148 of the I.T. Act, 1961." 9. We find ourselves unable to either countenance or sustain the reasoning as adopted by the respondents bearing in mind the following indisputable facts which emerged from the record. 10. The respondents have proceeded to frame a Section 148A (b) notice compendiously in respect of what they alleged was income which had escaped assessment in the hands of Top Most Investment, YK Securities as well as Glider Investment. This notice was so framed despite the admitted position which emerges from the record, namely, of the Scheme of Amalgamation [Scheme] of Top Most Investment and YK Securities with the petitioner having come to be approved on 27 February 2020. 11. The aforesaid Scheme in terms of the appoint ..... X X X X Extracts X X X X X X X X Extracts X X X X
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