Search Results For: 147


QUERY: A is not assessed to tax as his income is below the threshold limit, He holds shares of listed companies since 2009 (the original investment value is Rs. 15,00,000/-) Now during the F.Y. 2016-17, he wishes to sell the shares through stock exchange. Profit in his hand is LTCG and hence, it is exempted. But can the Assessing Officer ask to prove the source of investment of original investment? Can he make the addition of any type, just like the investment made out of undisclosed income?
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Section 149 provides that no notice under section 148 shall be issued for the relevant assessment year –
i) If four years have elapsed from the end of the relevant assessment year.
ii) If four years but not less than six years, have elapsed from the end of the relevant assessment year unless income chargeable to tax which has escaped assessment amount to or likely to amount to one lakh rupees or more for that year.

QUERY: Share application money which is taxed as Undisclosed in the hands of a private company can also be taxed as undisclosed income in the hands of applicants by issuing notice u/s. 148?
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The broad scheme of the Act is to charge all income to tax but only in the hands of the same person.
So share application money received by Private Limited Company has to be taxed in whose hands? The Supreme Court in CIT v. Steller Investment Ltd. [251 ITR 263] has given answer by stating that even if it be assumed that the subscribers to the increased capital are not genuine, under no circumstances could the amount of share capital be regarded as undisclosed income in the hands of the company.

QUERY: Whether an A.O. can assess the income in the hands of an assessee buyer u/s. 148 merely because the builder from whom he bought some property 3 years ago has NOW surrendered during search operations the cash (on money) portion as having received from the assessee? Any case laws favouring assessee buyer?
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Unless there is corroborative evidence with the Assessing Office that an assessee has paid “cash-on money” to builders, the reopening is not valid.