RAJSHREE REALTORS PRIVATE LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) Petitioner is impugning the notice dtd. 19/3/2019 issued by respondent no.3 under Sec. 148 of the Income Tax Act, 1961 (the Act).

(2.) Petitioner is engaged in the business of real estate and was regularly assessed to tax. For A.Y.2012-2013, petitioner had filed its return of income on 21/9/2012 declaring an income of Rs.1,05,318.00 and had shown the said income under the head 'Profit and Gains from Business and Profession". The return of income was initially processed under Sec. 143(1) of the Act. Subsequently, petitioner's case was selected for scrutiny under Computer Aided Scrutiny Selection (CASS) norms and statutory notices under Sec. 142(1) and 143(2) of the Act were issued to petitioner.

(3.) During the course of the assessment proceedings, petitioner was, by a letter dtd. 24/3/2015, called upon to explain huge share application money and share premium received by petitioner. Petitioner by its letters dtd. 14/11/2014, 27/2/2015 and 27/3/2015 replied and also provided all documents. Petitioner also provided the valuation report and the explanation for the share premium charged as also the details of the two subscribers, viz., Shubhshree Hirise Pvt Ltd (SHPL) and Subhdrishti Complex Pvt Ltd. (SCPL). Respondent no.3 proceeded to pass the assessment order dtd. 30/3/2015 under Sec. 143(3) of the Act and added as income under Sec. 68 of the Act, a sum of Rs.3,00,00,000.00 that petitioner had received as share application money. The face value of the share was Rs.10.00 and was subscribed by SHPL and SCPL at the premium of Rs.9.00 each. Respondent No.3 added under Sec. 68 of the Act, not only the face value of the share, i.e., Rs.10.00 but also the premium paid for the shares as income of petitioner. Against return of income of Rs.1,05,318.00, respondent no.3, in his order under Sec. 143(3), assessed petitioner's taxable income to Rs.3,01,05,318.00.