2023 (5) TMI 1298 - ITAT KOLKATA

Revision u/s 263 against non-Est assessment - As argued statutory notice under section 143(2) of the Act was not issued to the assessee - as per CIT AO has not examined the transactions of share capital and share premium received by the assessee during the year - HELD THAT:- As D.R. being unable to place any documentary evidence on record to prove that the assessee was served with the notice under section 143(2) of the Act at the time of carrying out the reassessment proceedings after the issue of notice under section 148, we are inclined to hold that such reassessment proceedings were itself bad-in-law and nonest and the same cannot be a subject matter of the revisionary proceedings and thus on this legal ground itself, the revisionary proceedings under section 263 of the Act are quashed.

Whether extensive inquiries and investigation was carried out by AO before adopting one of the possible views, hence, assessment order cannot be said to be erroneous? - There is no dispute to the fact that an extensive inquiry has been conducted by the ld. Assessing Officer regarding the issue of share capital and share premium received by the assessee during the year and the ld. Assessing Officer has made proper application of mind and taken possible view as permissible in law which are duly backed by the documentary evidences filed by the assessee, independent inquiry conducted by the ld. Assessing Officer and settled judicial precedence, therefore, since the issue referred in the show-cause notice under section 263 of the Act has been properly examined by the ld. Assessing Officer, there remains no justification for ld. CIT to assume jurisdiction on the very same issue and, therefore, we quash the impugned revisionary proceedings carried out under section 263 of the Act and allow all the grounds of appeal raised by the assessee.