| COURT: | Kerala High Court |
| CORAM: | P. B. Suresh Kumar J |
| SECTION(S): | 143(2), 56(2)(viib) |
| GENRE: | Domestic Tax |
| CATCH WORDS: | bogus share capital, CBDT Guidelines for scrutiny of cases, limited scrutiny, Scope of scrutiny |
| COUNSEL: | Anil D. Nair |
| DATE: | May 22, 2018 (Date of pronouncement) |
| DATE: | May 31, 2018 (Date of publication) |
| AY: | 2015-16 |
| FILE: | Click here to view full post with file download link |
| CITATION: | |
| S. 143(2) Limited scrutiny: The CBDT Circulars which restrict the right of the AO in limited scrutiny cases apply only in cases where the AO seeks to do comprehensive scrutiny to find if there is potential escapement of income on other issues. However, if the s. 143(2) notice seeks information on whether the share premium is from disclosed sources and is correctly offered to tax, the AO can also inquire into whether the premium exceeds the FMV and is taxable u/s 56(2)(viib) | |
In a case of this nature, the assessee cannot be heard to contend that the assessing officer has exceeded its jurisdiction in the matter of passing the impugned order merely for the reason that the funds received by them in the form of share premium have been assessed as provided for under Section 56(2)(viib) of the Act. The circulars relied on by the petitioner have no application to the facts of this case and the same would apply only in cases where the assessing officer needs to take the case of the assessee for a comprehensive scrutiny on a finding that there is potential escapement of income on other issues
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