ACIT Vs Shimmer Developers Pvt. Ltd. (ITAT Delhi)
ITAT Delhi held that transfer of shares of company by one set of shareholders to another set of shareholders does not give rise to any taxable event in the hands of company and has no tax incidence in the hands of the company whose shares were subject matter of transfer.
Facts- The assessee a private limited company engaged in business of real estate inter alia holds a property located at Barakhamba Road, New Delhi. A search and seizure operations were carried out u/s. 132 of the Act on AEZ Group and it was observed that the assessee company herein owns such property. It was further found by the Revenue authorities that entire shares of the assessee company were transferred at a consideration of Rs.55/- share. It was also found by the Revenue authorities that the consideration for sale of property is undervalued resulting in undisclosed consideration of about 150 crore. Based on such information made available, the Assessing Officer invoked provision of section 147 r.w.s 148 of the Act and case of the assessee was reopened for reassessment and addition of Rs.150 crore were made to the income / loss declared by the assessee. The income was finally re-assessed at Rs.1,43,46,46,123/-.
