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K. R. SHRIRAM, NEELA GOKHALE
Godrej Projects Development Pvt Ltd. – Appellant
Versus
Income Tax Officer, 1(1)(4) – Respondent
JUDGMENT :
K. R. SHRIRAM, J.
1. Petitioner is in the business of development of real estate and assessed to Income Tax. For A Y 2009-10, petitioner, filed its return of income on 7th September 2009. Petitioner’s return of income was scrutinized under Section 143 (3) of the Income Tax Act 1961 (the Act) by respondent no.1 and an assessment order dated 21st December 2011 came to be passed. Prior to passing of assessment order, petitioner received two Communications dated 21st January 2011 and 12th August 2011 under Section 142(1) of the Act calling upon petitioner to provide certain documents and in particular, the details of shareholding pattern of the company. In the cash flow statement filed, petitioner had mentioned that it had received as share premium amount a sum of Rs.215,011,618/- which was used entirely for redemption of preference shares. In fact, in the communication dated 12th August 2011, petitioner was called upon to furnish “in case of securities premium / share premium received, justify charging of the same with supporting documentary evidences”. Petitioner, in its
The court established that there must be tangible material justifying the reopening of an assessment, and the assessing officer must have a reason to believe that income had escaped assessment.
Reopening of assessment beyond four years without failure to disclose material facts is invalid; share premium treated as capital receipt not taxable under Section 68 prior to 2013 amendment.
Reopening of assessment under Section 148 is impermissible if it is based on previously examined issues without new material.
The main legal point established in the judgment is the requirement for the belief to be based on reasonable grounds and the need for the assessee to disclose fully and truly all material facts neces....
Intimation under section 143(1)(a) was deemed to be a notice of demand under section 156, for the apparent purpose of making machinery provisions relating to recovery of tax applicable. By such appli....
The function of the assessing authority at this stage is to administer the statute and what is required is a reason to believe and not to establish fact of escapement of income and therefore, looking....
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