The Assessment of the petitioner was completed u/s 143(3) of the Act. In the recorded reason it was stated that the return was filed on 25 th November 2014, where as in the recorded reasons it was stated as 27 th October, 2016.It was stated that assessee holds shares 0.01%, i.e. 10 shares in itself. How can a company hold its own shares. On writ allowing the petition the Court held that approval granted by the Dy. Commissioner without application of mind and verifying the facts. The reassessment notice was quashed. Followed Ankita A. Choksey v. ITO(2019) 411 ITR 207 (Bom)(HC), German Remedies Ltd. v. Dy. CIT(2006) 287 ITR 494 (Bom)(HC). (AY. 2014-15)
Sea Glimpse Investments Pvt. Ltd. v. Dy. CIT (2022) 209 DTR 318 / 324 CTR 535 (Bom.)(HC)
S. 151 : Reassessment-Sanction-Recorded reasons are not correct-Date of return was filed on 25th November 2014, where as in the recorded reasons it was stated as 27th October, 2016-Assessee holds shares 0.01%, i.e. 10 shares in itself-How can a company hold its own shares-Reassessment notice was quashed. [S. 147, 148, Art. 226]