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2019 (3) TMI 230 - AT - Income TaxAddition u/s 68 in Revision proceedings u/s 263 - unexplained share application money - AO admittedly did not resort to make enquiries in the manner stated by the ld CIT u/s 263 of the Act inspite of the fact that all the necessary details were very much available before him - HELD 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. Pursuant to directions of the 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 supra. CIT had specifically directed the AO to make enquiries directly from the shareholders and not through the assessee. Hence non-appearance of the assessee or non-submission of details before the AO intentionally or unintentionally does not make any relevance here. AO admittedly did not resort to make enquiries in the manner stated by the CIT u/s 263 inspite of the fact that all the necessary details were very much available before him. 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. We deem it fit and appropriate, in the interest of justice and fair play, to remand the matter back to the file of the AO for de novo assessment and to decide the matter as mandated by the ld CIT in section 263 order, after giving sufficient opportunity of being heard to the assessee. Grounds raised by the assessee are allowed for statistical purposes.
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