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2018 (6) TMI 1048 - AT - Income TaxRevision u/s 263 - addition u/s 68 - undisclosed share capital/ share premium - Held that:- Simply because there is an adverse inquiry report in the case of M/s. Prosperity Mercantile Pvt. Ltd. that it is some kind of shell company managed by some entry providers through their companies, that by itself will not implicate assessee, unless the assessee is found to have taken some kind of accommodation entry from this company. Till such adverse material is found from or inquiry, no reason to hold that such a share capital premium received by the assessee company is to be treated as bogus. If something adverse is found qua the assessee in the proceedings in the case of M/s. Prosperity Mercantile Pvt. Ltd., then department is free to rope in assessee under the provisions of Act. But as of now, it cannot be held that assessment order accepting the share capital/ share premium is prejudicial to the interest of revenue - No addition u/s 68 could be warranted in the case of the assessee in facts and circumstances of the case. Impugned order u/s 263 setting aside the assessment order is cancelled on this issue. On the issue of WIP being nil, nowhere the Ld. PCIT has discussed why the order of the AO is erroneous in so far as it is prejudicial to the interest of revenue. In fact there is no adverse finding or comment by him as why the WIP as shown by the assessee at nil is not correct or requires further inquiry or verification. To set-aside the assessment on this issue he has to demonstrate that order of the AO is erroneous or prejudicial. No reason for setting aside this matter to the AO and accordingly, on this issue also the order of the Ld. PCIT is cancelled. - Decided in favour of assessee.
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