Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2022 (4) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (4) TMI 485 - AT - Income TaxRevision u/s 263 by CIT - sale of investment in equity shares - HELD THAT:- In the assessment order u/s 143(3) r.w.s. 147 AO specifically mentioned the issue pertaining to alleged transaction from sale of shares and after making a detailed enquiry and considering the documents received from the assessee from time to time, came to a conclusion that the alleged transaction is a genuine transaction of sale of shares as against the sale of investment assessee received consideration and the same is supported by sufficient material evidences. This is a clear case of complete and adequate enquiry conducted by the AO on the very same issue mentioned in the show cause notice issued u/s 263 and, further,AO was satisfied with these documents and those documents have been perused by us also, placed in paper book and find sufficient force in the contention of the ld. Counsel for the assessee that since there is a complete enquiry. Thus, ld. Pr. CIT erred in assuming jurisdiction u/s 263 of the Act as the AO has taken one of the permissible view provided under the law. This is a clear case of sale of investment by the assessee and, further, even if ld. Pr. CIT was not satisfied with the detailed enquiry conducted by the AO, he should have done independent enquiry on its own so as to find an error in the enquiry conducted by the ld. AO in view of the ratio laid down in the case of DG Housing Projects Ltd. [2012 (3) TMI 227 - DELHI HIGH COURT] - No such finding is there in the impugned order and ld. Pr. CIT has only referred to the report of the Investigation Wing which was already put before the ld. AO and there is no other new material which could support the view of the ld. Pr. CIT holding the assessment order as erroneous and prejudicial to the interest of the Revenue. Firstly the issue raised in the show cause notice has been examined by ld. AO, being part of the reasons recorded for re-opening the case of the assessee and ld. AO after going various rounds and calling for various evidences and documents took the plausible view and accepted the transaction of ₹ 5,00,000/- received from sale of investment in equity shares as genuine. Secondly, ld. Pr. CIT erred in observing that ld. AO has not examined at all the issue of receipt of ₹ 5,00,000/-, thirdly, ld. Pr. CIT failed to appreciate that the assessee company is a non-banking financial company and the accounts are audited under the Companies Act and ld. AO took a permissible view in the matter after thoroughly examining the related documents. Fourthly, the present case is not a case of no enquiry but it is a case where complete and adequate enquiry has been conducted by the ld. AO. We, therefore, quash the impugned order passed u/s 263 of the Act and allow all grounds of the appeal raised by the assessee and restore the assessment order passed u/s 143(3) r.w.s. 147 - Decided in favour of assessee.
|