|The Tax Publishers2020 TaxPub(DT) 3883 (Bom-HC) : (2020) 428 ITR 0327 : (2021) 276 TAXMAN 0316
INCOME TAX ACT, 1961
In the absence of failure to reopening of assessment beyond four years was hit by proviso to section 147 and, therefore, reassessment was quashed as invalid.
Reassessment - Notice beyond four years - No failure to disclose fully and truly all material facts -
AO issued notice under section 148 after expiry of four years from the end of relevant assessment year on the reasoning that assessee transferred shares of listed entites at nil consideration to unlisted group entity was with the sole purpose of evading payment of capital gains tax and such transfer clearly fell within the scope of a colourable device. Held: Assessee had disclosed fully and truly all material facts necessary for assessment to AO. After several rounds of explanations and hearings, AO accepted claim of assessee vis-a-vis transfer of equity shares of ZEE to group entity as a gift without consideration whereafter assessment order was passed under section 143(3). Therefore, notice was hit by proviso to section 147. Even impugned transfer of shares without consideration was a gift, which was valid, permissible and genuine and was exempt from provision of capital gains under section 47(iii). Accordingly, very foundation on which impugned notice was issued no longer survived and notice was quashed.
Relied:Jayneer Infrapower & Multiventures (P) Ltd. v. Dy. CIT (2019) 103 taxmann.com 118 (Mum) : 2019 TaxPub(DT) 1730 (Mum-Trib).
FAVOUR : In assessee's favour.
A.Y. : 2012-13
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