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2022 (8) TMI 1166 - ITAT RAJKOTRevision u/s 263 by CIT - AO accepted claim of genuineness of Share Capital Investment by various persons without making inquiries or verification of the claim, as prescribed in clause (a) & (b) of first proviso to Section 68 - HELD THAT:- Though the original assessment order passed by the Assessing Officer is a cryptic order without much discussion on the verifications made by the A.O. and the explanation offered by the assessee. As can been seen from the Paper Book filed by the assessee, wherein assessee’s detailed reply wherein details above the unsecured loans remained outstanding at the end of the 31.03.2018 with copy of the Ledger account, Income Tax Return of the respective parties, computation of income, balance sheet, Profit and Loss account were enclosed. Assessee also replied that no commercial production is started during this assessment year, therefore raw material on purchased is shown as closing stock in the books of accounts and no other expenses debited in the profit and loss account. Assessee also further submitted name and addresses of the sundry creditors and sundry debtors. Further contra ledger of sundry creditors also filed. Similarly, the assessee enclosed list of shareholders with shareholding pattern in assessee’s company with copy of the ledger account, copy of the Income Tax Return and copy of the bank statement were submitted to the Assessing Officer vide Exhibit-H. It is further seen on these documents were electronically uploaded by the assessee in reply to the 143(2) notice, the A.O. having been satisfied with the explanation offered by the assessee. AO has accepted the explanations and completed the assessment order u/s. 143(3) of the Act. It is not the case of the assessee that the A.O. has not conducted necessary inquiry, verification before passing the assessment order. The assessing officer has verified the share application money which were being routed through banking channels and the respective Income Tax Return by the investors were also been verified by the Assessing Officer. Similarly, on the unsecured loans the same were received by the assessee company through banking channels by way of cheques and the bank statements were also been produced before the Assessing Officer for verification along with Return of Income filed by the respective assessees/creditors. Thus, the Assessing Officer accepted the genuineness of the share application money and unsecured loans received by the assessee. Such a view of the Assessing Officer was a plausible view and the same cannot be considered as erroneous or prejudicial to the interest of revenue. Thus it is not open to the Ld. PCIT to revise the issues on mere apprehensive and surmises that the A.O. has not made proper verification before passing the assessment order. It is settled principle of law by the Hon’ble Apex Court in the case of CIT vs. Shreeji Prints (P.) Ltd. [2021 (9) TMI 108 - SUPREME COURT] when Assessing Officer made enquiries in detail and accepted the genuineness of loan received by the assessee such view of the Assessing Officer was a plausible view and same cannot be considered as erroneous or prejudicial to the interest of revenue. Thereby the revision proceedings initiated invoking to Explanation 2 to Section 263 of the Act is held to be invalid and the same is not sustainable in law. Thus it is evident that the ld. Assessing Officer has made due inquiries by issuing notices and the assessee also filed detailed submissions with evidences. Even though the assessment order does not discuss all these aspects in detail with regards to the submissions of the assessee, it cannot be held the assessment order is erroneous and prejudicial to the interest of the Revenue. - Decided in favour of assessee.
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