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2018 (7) TMI 1481 - AT - Income TaxNon compliance with CIT-A's Revision order u/s 263 - CIT-A directing the Assessing Officer to conduct a thorough enquiry to examine the genuineness and creditworthiness of the assessee’s share application/premium - Held that:- Neither of the lower authorities in assessment as well as in the appellate proceedings has complied with the CIT’s section 263 directions (supra). It emerges that the Assessing Officer had sent section 131 process to the assessee’s investor entities. He thereafter made the impugned addition without going through the corresponding particulars of the said investors on his own quoting the assessee’s and said investors’ failure in substantiating their respective claims in support of the impugned share application/premium. We observe that a coordinate bench of this tribunal in M/s. Sukanya Merchandise Pvt. Ltd. Vs ITO in this backdrop of facts [2017 (12) TMI 1547 - ITAT KOLKATA] restores the very issue of genuineness and creditworthiness of share application/premium on account of lower authorities failure in ensuring compliance of CIT’s identical section 263 Learned Departmental Representative fails to rebut the above factual position as well as corresponding similar legal developments herein above. We therefore restore the instant lis as well back to the Assessing Officer for fresh adjudication as per law after affording adequate opportunity of hearing to the assessee. - Decided in favour of assessee for statistical purposes.
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