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 905 - AT - Income TaxRevision u/s 263 by CIT - Addition u/s 68 - issue of share capital/premium - whether the requisite jurisdiction necessary to assume revisional jurisdiction is existing in this case before the Pr. CIT rightfully exercised his revisional power? - HELD THAT:- In the case in hand, it is other way round i.e. the assessee is pleading before the Ld. Pr. CIT to look into the records at the time when he exercises the revisional jurisdiction u/s 263 of the Act wherein enquiries had been conducted by the AO during the search assessment proceedings in the year 2015. In the instant case, the assessee pleads that the subsequent events/enquiry conducted by the AO in the year 2015 on the issue of share capital and premium, [which issue has been found fault by the Ld. Pr. CIT in respect of the assessment order dated 28.03.2011 by passing the impugned order], should be looked in to at the time of exercising revisional jurisdiction is legally tenable and the Ld PCIT ought not to have passed the impugned order without looking in to the subsequent enquiry conducted by the AO on this issue [share capital and premium] in 2015 and consequently the PCIT erred in ignoring the records which contained the enquiry conducted by AO in the year 2015. And therefore the omission on the part of PCIT to ignore the enquiry carried out by the AO [AO, Central Circle] in respect of share capital and premium collected by the assessee, vitiates his impugned action of finding fault with the action of AO [even in respect of the original assessment] on account of lack of enquiry on the part of the earlier AO in respect of share capital/premium. Subsequent events/development also need to taken into consideration while the Ld. Pr. CIT exercised his jurisdiction u/s. 263 of the Act, by applying the same standard in the case in hand the Ld. Pr. CIT ought to have looked into the subsequent enquiries conducted by the AO albeit u/s. 153A of the Act and examined as to whether there was enquiry conducted by the AO in 2015 in respect of the nature and source of the share capital and premium collected by the assessee for AY 2009-10. Here in this case the Ld. Pr. CIT ignored to look into the subsequent action carried out by the AO in the case of assessee’s assessment for AY 2009-10 which is an ‘omission’ on his part which is erroneous/illegal because as per the definition given for records [u/s 263 of the Act], even the subsequent assessment proceeding u/s. 153A is deemed to always to have been included in the assessment records for AY 2009-10, which at the time of examination by him u/s 263 of the Act, he was duty bound to examine. And if the Ld PCIT had examined the assessment folder for AY 2009-10, which would have definitely thrown light in respect of enquires conducted by the AO on the issue of share capital/premium. Therefore, the Ld. Pr. CIT erred in not looking into the records pertaining to the 153A proceeding (post-search) and thereby he ignored the relevant material (enquiry conducted by AO, Central Circle) to hold the action of the AO in original assessment to be erroneous as well as prejudicial to the interest of revenue - the order of Ld. Pr. CIT cannot be sustained and therefore, quashed. Appeal of assessee allowed.
|