Case Law Details
Suminter Organic and Fair Vs DCIT (Bombay High Court)
Bombay High Court held that reopening of assessment in absence of failure on the part of the assessee to disclose fully and truly the material facts and also in absence of any tangible material is unjustifiable.
Facts- The Petitioner challenges the notice under section 148 of the Income Tax Act. The reason for reopening is that the petitioner had issued premium of Rs.17 per share, which was not valued correctly in terms of Rule 11UA r/w Section 56(2)(viib) of the Income Tax Act and that the correct valuation of equity shares as per the aforesaid rule worked out at Rs.6.48 per share. It was thus stated that an amount of Rs.1,68,30,000/- received as premium was required to be added as income from other sources. The reasons also reflect that the assessee had failed to disclose truly and fully the material facts and, therefore, the case was selected to be reopened under Section 147 of the Act.
Conclusion- Held that we have no hesitation that there was no failure on the part of the assessee to disclose fully and truly the material facts, nor there was any tangible material with the A.O. which would have otherwise justified the reopening of the assessment by issuing the notice impugned.
FULL TEXT OF THE JUDGMENT/ORDER OF BOMBAY HIGH COURT
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