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2015 (12) TMI 1615 - ITAT MUMBAIRevision u/s 263 - "prejudicial to the interest of revenue" - multiple share transfers by assessee - Held that:- On verification of the notices and u/s 142, the questionnaires and replied thereto, we find that the AO probed into the aspects of each of the related concerned, facts relating to the multiple share transfers by the assessee company repeated over the short span of time, facts relating to the purchase of shares by the assessee with no adequate funds from Universal for consideration lower than the market price, raising of the funds through the OFCDs route from the INSTANT and clearing of the liabilities to the Universal etc. We also examined and the following annexures reflect the fact of verification of the details relating to the Share purchase transactions from the UNIVERSAL for the lower price. When the AO formed an opinion on an issue ( ie amount of premium on the OFCD), the CIT cannot sit on the judgment seat as the review officer u/s the provision of section 263 of the Act. Judgmental law does not permit the same. The assessee purchased the shares from the said Zensar, KEC, Spencer and Co Ltd and the transactions are considered by the AO genuine. Fact of verification of the share purchase transaction is very much on records. We find the AO is aware of and informed of the facts relating to the purchase price of the said shares, being lessor than that of the FMV. Considering the facts narrated by the Sri Mehta, we find that the AO conducted necessary enquiries in to various aspects of the said purchase transactions and opined to make addition on account of „excess premium‟ only and invoked the provisions of section 56 of the Act and not on account of the said share purchase transactions involving Zensar, KEC, Spencer and Co Ltd. Therefore, we find no error in the order of the AO, whether of legal or factual nature on that account.- Decided in favour of assessee.
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