TMI Blog2021 (6) TMI 569X X X X Extracts X X X X X X X X Extracts X X X X ..... visions of section 263 is fulfilled. Hence, we affirm the order of ld. PCIT. In the result the grounds of appeal raised by the assessee are dismissed. - ITA No.166/SRT/2020 - - - Dated:- 3-6-2021 - Shri Pawan Singh, Judicial Member And Dr. Arjun Lal Saini, Accountant Member For the Assessee : Shri Rajesh Bhuwala CA For the Revenue : Shri Ritesh Mishra CIT(DR) Order under section 254(1) of Income Tax Act PER PAWAN SINGH, JUDICIAL MEMBER: 1. This appeal by the assessee are directed against the order of ld. Principal Commissioner of Income Tax, Surat-1,hereinafter referred as Ld. Pr.CIT under section 263 of the Act dated 18.03.2020 for the assessment year (AY) 2010-11. The assessee has raised following grounds of appeal: 1. For that the order of the learned CIT is arbitrary, illegal, excessive, perverse and bad in law. 2. Because the Reopening of assessment by A.O. is itself bad in law and without application of mind as there was no any amount received by assessee from Inland Vanijaya Pvt. Ltd. which was the basis of reopening. The AO has not made any addition for this also. There are judicial rulings which clearly sa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hs with regard to Salpaturi Suppliers Pvt. Ltd., Deejay Promoters Pvt. Ltd., Lodha Company Ltd., Janet Investment Pvt. Ltd., Jabali Commercial Co. Pvt. Ltd., and VHS Jaiswal Sales Pvt. Ltd. The AO after making certain enquiry and granting opportunity to the assessee completed assessment on 29.12.2017 under section 143(3) r.w.s 147 of the Act. 4. The assessment order dated 29.12.2017 was revised by ld. Pr.CIT under by exercising his jurisdiction power under section 263 of the Act. Before passing the order, the ld. Pr.CIT noted that on perusal of scrutiny record noted that the assessee company taken share capital and share premium of ₹ 31,00,000/- from following companies Name of the share subscriber Share capital Rs. Share premium Rs. Total credit Rs. Salpaturi Suppliers Pvt. Ltd 37,500 7,12,500 7,50,000 Deejay Promoters Pvt. Ltd 5,000 9,50,00 1,00,000 Janet Investment Pvt. Ltd.,. 37500 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ds was received from said company. The reply of the assessee was not accepted by the Ld.Pr.CIT. The ld.Pr.CIT held that assessment order dated 29.12.2017 passed under section 143(3) r.w.s 147 is erroneous and prejudicial to the interest of the Revenue and the Assessing Officer is directed to recompute and determine the correct total income of the assessee after making the additions as discussed by Ld.Pr.CIT. The Assessing Officer was also directed to provide reasonable opportunity of hearing to the assessee. Aggrieved by the order of ld. Pr.CIT, the assessee has filed present appeal before this Tribunal. 7. We have heard submissions of ld.AR of the assessee and ld.Sr.DR for the Revenue and gone through the material available on record. The ld.AR of the assessee submits that assessment order dated 29.12.2017 passed under section 143(3) r.w.s 147 is itself illegal and bad in law. The Assessing Officer reopened the case on the basis of receipt of share capital received from Inland Vanijya P. Ltd. No funds or even a single penny is received from said company. No addition on this point was made by Assessing Officer while passing the re-assessment order. This objection was rais ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ies namely, Salputri Suppliers Pvt Ltd, Rose Valley Sales Pvt Ltd. and Janet Investment Pvt. Ltd. nor there is any reference in the assessment order. The assessment order is, thus erroneous and prejudicial to the interest of the Revenue. Since the ld.AR of the assessee failed to make any submission on the merit, thus, the order passed under section 263 of the Act is liable to be upheld. 10. We have considered the rival submission of the parties and have gone through the orders of authorities below. We find that the Assessing Officer while passing the assessment order has neither raised any query nor make any reference in the assessment order, with regard to share application and share premium of Salputri Suppliers Pvt Ltd, Rose Valley Sales Pvt Ltd. and Janet Investment Pvt. Ltd. Before us, the ld.AR of the assessee failed to bring any material that issue related with the transaction of share application money and share premium of all these three entities was examined by Assessing Officer. No submission with regard to the identity, creditworthiness or genuineness of the transaction of these three companies were made before us. The ld.AR for the assessee rather insisted that as ..... X X X X Extracts X X X X X X X X Extracts X X X X
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