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2018 (8) TMI 1796 - AT - Income TaxJurisdiction u/s 263 - Addition u/s 68 towards share capital - HELD THAT:- In dispute that the entire transactions of share capital and share premium was the subject matter of verification in the re-assessment proceedings by the AO, wherein the shareholders had duly responded to notice u/s 133(6) of the Act by confirming the fact of making investments in the assessee company. The shareholders had also duly furnished their income tax assessment particulars. CIT u/s 263 AO was mandated to make direct verifications about the genuineness of the transactions and creditworthiness of the shareholders by making necessary specific enquiries as listed out in the revision order u/s 263 - CIT had specifically directed the AO to make enquiries directly from the shareholders and not through the assessee. Non-appearance of the assessee before the ld AO and non-production of the shareholders of the assessee company before the AO, intentionally or unintentionally does not make any relevance here. CIT had directed the AO to investigate into multiple layers of the investment in shares made by respective shareholders and identify the ultimate person holding controlling interest including the change in shareholding, directorship etc and then take the entire matter to its logical conclusion to bring out the facts on record. From the perusal of the assessment order, we find that this has not been done by the ld AO. Remand the matter back to the file of the AO for de novo assessment and to decide the matter as mandated by the CIT in section 263 order, after giving sufficient opportunity of being heard to the assessee. Accordingly, the Grounds raised by the assessee are allowed for statistical purposes.
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