ITAT upholds Revenue's plea
that assessee (a private limited company & engaged in real estate
business) received high share premium as a conduit to route the funds
involved as a 'layering' process, holds that share-premium of Rs.49.5cr is
taxable u/s 68 as unexplained cash credit for AY 2008-09; ITAT considers facts
such as absence of proper valuation report to justify high premium,
relatively weak financials compared to high valuation, issue of shares to
directors at par, discrepancies / abnormal features which indicate that share
issue was “made up” to camouflage the real purpose/intention of routing
money; Relying on Calcutta High Court ruling in Pragati Financial
Management Pvt. Ltd. Vs. CIT, ITAT holds that share capital addition can be
made u/s 68 since the initial onus was not discharged by the assessee;
Also, rejects assessee's reliance on Delhi ITAT ruling in ACIT Vs. NRA Iron
& Steel Pvt. Ltd., wherein funding was raised from multiple investors as against
assessee's facts where a single investor was present; On the issue of
jurisdiction, ITAT upholds validity of second re-assessment notice
(issued within 6 days after the first reassessment was dropped) which
resulted in share premium addition, ITAT holds that "since
substantive issue in question was never examined under the proceedings in
the first notice issued on 18.4.2012, the question of change of opinion
does not arise" :ITAT
Subscribe to:
Post Comments (Atom)
Identifying a Drafting Error in GST Amnesty Provisions
Provision Regarding Amnesty Scheme Section 128A was introduced into the Central Goods and Services Tax (CGST) Act by the Finance Act, 2024,...
-
In this article, for the benefit of our reader’s we have come up with detailed FAQ on procedures of issuance, requirement of Form 15CA an...
-
1. Situation I. Tax Department Summons An employee received a summons from the tax department demanding an explanation for failing to discl...
-
Particulars in Part 1 and Part 2 of Step-2 of registration form are required to be exactly the same as reported in the TDS statement. Plea...
-
In this post, I will discuss Secretarial Standards related to Proxies under SS – 2. Right to Appoint: A Member entitled to attend and ...
-
Many of us rely on home loans to purchase residential property, but are you fully aware of how tax laws impact your financial strategy? Unde...
-
Summary of the relevant updates is provided below for ease of your reference: A) Proposals relating to GST law, Compliances an...
-
Particulars Singapore Hong Kong Corporate Tax rate 17% 16.5%. Numb...
-
The circular of the Board dt. 28.06.1965 No. 17 (XL-36), provides for inspection fees and fees for certified copies of assessment and...
-
The posting had been move to another website. Please click the link below to get the access of the same. https://taxofindia.wordpress....
No comments:
Post a Comment