Facts of the case:
- Completed assessments were sought to be reopened by the revenue after a lapse of six years on ground that there were some materials on record and informations that assessee had received money from company SAEHL in name of share subscription along with share premium of Rs.203.98 crores.
- Assessee has also allotted shares to Kalanithi Maran and his wife only at Rs.10 per share without any premium.
- Revenue contended that the Share premium invested by SAEHL was clearly excess value received and had not been disclosed in return of income which was required to be
assessed to tax under Section 68 of the Act.
Judgement : The Honorable High Court of Madras in the above case has held that the reopening of assessment was valid and in accordance wih the law.