Re-opening of assessment to tax share premium
During the period between 2007 and 2012, many companies were raising capital by issuing shares at a huge premium. The Income-tax department had re-opened assessment of all such companies that had issued shares at a price higher than the book value of the company. In many cases, the return was processed u/s 143(1) of the Income-tax Act, and hence the Revenue Authorities claimed the reopening of assessment to be in due compliance of law.
Date & Time
07
Jul 2023 | 3:00 PM - 4:00 PM
Recently, the Bombay High Court has, in a Writ Petition [SLS Energy Pvt. Ltd. v. ITO (Writ Petition No 331 of 2016, decision dated 27 June 2023)], quashed reopening of such assessments as being beyond the jurisdiction of the Assessing Officer. This decision lays down many important principles. Primarily, it sheds much light on the question of whether re-opening of assessment can be a subject matter of challenge when the return was only processed u/s 143(1).
Lakshmikumaran & Sridharan Attorneys is organizing a webinar on 7 July 2023 (Friday) between 3:00 PM to 4:00 PM, for an in-depth understanding of the principles laid down by the judgment. The webinar would cover:
- Principles on taxation of issue of shares at a premium (law prior to 2012 and post 2012)
- Law around re-opening of assessment when the return was only processed u/s 143(1) (law prior to 2021 and post 2021)
- Scope of challenge to exercise of extraordinary jurisdiction before a High Court in Writ Petition.
- Applicability of the judgment to other forms of raising of capital (loans, debentures, etc.)
Speakers:
- Sriram – Partner, LKS
- Ravi Sawana – Associate Partner, LKS
