INCOME TAX ACT, 1961

Section 147

Reassessment - Reason to believe - Information received as to assessee having received huge share premium -

AO on perusal of information available on record and information received from CCIT(CCA), Mumbai, noticed that assessee had issued 3,20,000 equiry shares having face value of Rs. 10 on a premium of Rs. 90. It was the first year of business operation of assessee-company and therefore AO took the view that intrinsic value of equity shares issued by assessee-company could only be considered at face value of Rs. 10. Accordingly, AO reopened assessment on the ground that share premium received was not genuine and assessee had introduced unexplained cash credit equivalent to amount of share premium under section 68. Assessee challenged reopening on the ground that AO could not reopen assessment on the above given reasons because only dispute was regarding share premium received at the rate of Rs. 90 per share but he could not point out how the reasons recorded were in terms of section 147. Held: As apparent, AO had received information on the basis of same reopening was done, assessee only made submissions that AO could not reopened assessment on the above given reasons because only dispute was regarding share premium received at the rate of Rs. 90 per share but he could not point out how the reasons recorded were in terms of section 147. It was not sufficient and there was no infirmity in reopening made by AO.

REFERRED :

FAVOUR : Against the assessee.

A.Y. : 2009-10

INCOME TAX ACT, 1961

Section 68

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