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2019 (6) TMI 464 - AT - Income TaxRevision u/s 263 - enquiry on the part of the AO in examining the creditworthiness of shareholders and genuineness of transaction - notices u/s 133(6) - HELD THAT:- It is an admitted material fact on record that the observation of the ld. Pr.CIT regarding the issue of notices u/s 133(6) that the Assessing Officer has issued said notices on test check basis is factually incorrect, as the assessee has received share application money from the three share subscribers during the year under consideration and so notice u/s 133(6) were sent to all the subscribers. From the bank statement of the subscribers companies, it is revealed that there was no cash deposit in this accounts and there was sufficient balance available to make investment in share capital of the assessee company and that the bank statement of the companies itself cannot determine the creditworthiness of the company, in-fact, the reference has to be made to the balance sheet whereas there is no satisfaction of the ld. Pr.CIT in this regard. Pr.CIT relating to sources of source, it is seen that the documentary evidences furnished along with supporting evidences such as bank statement, audited statement of account, balance sheet, profit and loss account, clearly established the fact that the tangible net worth of the disputed companies was more than sufficient and was much more than the amount invested in the shares of the assessee company. Therefore, the source of source of investment has been established by the assessee and after being satisfied with the submission of the assessee, the AO did not opt to make addition u/s 68 of the Act. Pr.CIT has wide supervisory power u/s 263 however, he cannot invoke such powers to substitute the view taken by the Assessing Officer merely on the basis of the presumption. The case laws relied on by the Pr.CIT are distinguished in peculiar facts of the case as the facts of those cases were related to the paper shell companies to convert it unaccounted money into accounted funds/income and no enquiry was invoked by the Assessing Officer by way of issuing notices u/s 133(6), whereas in the present case the investor companies are not paper/shell companies and Assessing Officer has invoked proper and sufficient enquiries by issuing notices u/s 133(6) which are duly complied with by the assessee. - Decided in favour of assessee.
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