TMI Blog2018 (7) TMI 1481X X X X Extracts X X X X X X X X Extracts X X X X ..... ’ failure in substantiating their respective claims in support of the impugned share application/premium. We observe that a coordinate bench of this tribunal in M/s. Sukanya Merchandise Pvt. Ltd. Vs ITO in this backdrop of facts [2017 (12) TMI 1547 - ITAT KOLKATA] restores the very issue of genuineness and creditworthiness of share application/premium on account of lower authorities failure in ensuring compliance of CIT’s identical section 263 Learned Departmental Representative fails to rebut the above factual position as well as corresponding similar legal developments herein above. We therefore restore the instant lis as well back to the Assessing Officer for fresh adjudication as per law after affording adequate opportunity of hea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the assessment order as well. This appears to be the second round of proceedings between the parties. The Assessing Officer had earlier framed the assessment/re-assessment in question on 07.07.2010 assessing the total taxable income to be ₹ 10,630/-. The CIT thereafter exercise its revision jurisdiction vested u/s 263 of the Act in his order dated 07.07.2010 directing the Assessing Officer to conduct a thorough enquiry to examine the genuineness and creditworthiness of the assessee s share application/premium of ₹ 3,08,00,000/- received during the relevant previous year. Both parties are fair enough in informing us that the said directions had made it clear that the Assessing Officer would conduct independent enquiry (ies) i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ned share application/premium. We observe that a coordinate bench of this tribunal in M/s. Sukanya Merchandise Pvt. Ltd. Vs ITO in this backdrop of facts ITA No.291/Kol/2016 decided on 15.02.2017 restores the very issue of genuineness and creditworthiness of share application/premium on account of lower authorities failure in ensuring compliance of CIT s identical section 263 directions as under : 6. In the case of M/s. Sukanya Merchandise Pvt. Ltd. vs ITO (ITA 291/Kol/2016 dated 15.12.2017) cited by the learned counsel for the assessee, a similar view has been taken by the Co-ordinate Bench of this Tribunal and the similar issue relating to the addition made under section 68 on account of share capital contribution by treating the s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... produce the directors of the company before him on 26.03.2014, the assessee company contended that it has not received the said summon and, therefore, could not make the personal appearance. The AO has drawn adverse conclusion basically because of non-appearance of the directors of the assessee company and that of the shareholder companies. We note that initially the AO started the enquiry on 16.08.2013 which was complied by the assessee by submitting documents which has been acknowledged by the AO. Thereafter, the enquiry was started only at the fag end of February 2014 and the assessee company had informed the AO that their directors were out of station till 23.03.2014. In the light of the aforesaid facts, we are of the opinion that the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of share application money received along with premium amounting to ₹ 8,06,00,000/- which has remained unexplained and added to the income of the assessee. We also note that the Ld. CIT after looking into the pernicious practice of converting black money into white money has given the guidelines to AO as to how the investigation should be conducted to find out the source of source. Since similar order of the Ld. CIT passed u/s. 263 of the Act has been upheld by the Tribunal as well as by the Hon ble Calcutta High Court as well as the SLP has been dismissed by the Hon ble Supreme Court, similar order of the Ld. CIT has to be given effect to as directed by the Ld. CIT. We take note that the Ld. CIT with his experience and wisdom has g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 42. The AO here may have failed to discharge his obligation to conduct a proper inquiry to take the matter to logical conclusion. But CIT(Appeals), having noticed want of proper inquiry, could not have closed the chapter simply by allowing the appeal and deleting the additions made. It was also the obligation of the first appellate authority, as indeed of ITAT, to have ensured that effective inquiry was carried out, particularly in the fact of the allegations of the Revenue that the account statements reveal uniform pattern of cash deposits of equal amounts in the respective accounts preceding the transactions in question. This necessitated a detailed scrutiny of the material submitted by the assessee in response to the notice under ..... X X X X Extracts X X X X X X X X Extracts X X X X
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