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2023 (1) TMI 1030 - AT - Income TaxRevision u/s 263 - Addition u/s 68 - unsecured loan received by the assessee firm from shell companies circulated by ITD/SEBI was to be treated as an unexplained cash credits u/s.68 - repayment of unsecured loans made by the assessee company during the year to 7 companies - HELD THAT:- A.O might have examined the loans transaction of the assessee with the aforementioned party, viz. M/s. Alipore Vinimay Private Limited, Kolkata, but in the backdrop of the very fact that the information circulated by the ITD/SEBI revealed that the name of the said lender party figured in the list of shell companies therefore, it was rightly observed by the Pr. CIT that the order of the A.O accepting the loan transaction under consideration had rendered his order passed u/s.143(3) as erroneous in so far as it was prejudicial to the interest of the revenue u/s.263 of the Act. Admittedly, there is no denying the fact that the A.O had looked into the loan transactions under consideration, but the same was to the extent of the material which was therefore before him. Also, it is not the case of the Ld. AR that the observation of the Pr. CIT that the name of the aforementioned investor company, viz. M/s. Alipore Vinimay Pvt. Ltd., Kolkata figured in the list of the shell companies as was circulated by the ITD/SEBI was ill-founded or incorrect. Pr. CIT had set-aside the matter to the file of the A.O with a direction to re-adjudicate the same after affording sufficient opportunity to the assessee, therefore, no infirmity could be attributed to his directions considering the totality of the facts and material as was there before him at the time of passing of the order u/s.263 No infirmity in the view taken by the Pr. CIT who had rightly set-aside the order passed by the A.O u/s.143(3) dated 27.12.2019, i.e., to the extent he had accepted the loan transaction received by the assessee from M/s. Alipore Vinimay Private Limited, for re-adjudication, i.e., after affording a reasonable opportunity of being heard to the assessee, therefore, uphold his order to the said extent. Appeal of the assessee is partly allowed in terms of our aforesaid observations.
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