TMI Blog2022 (4) TMI 95X X X X Extracts X X X X X X X X Extracts X X X X ..... ned Pr. CIT had proceeded on incorrect application of law while invoking his revisionary jurisdiction under Section 263. Assessee had duly furnished all these details before the learned AO during the course of assessment proceedings in response to the queries raised by the learned AO. Hence it can be safely concluded that the learned AO had indeed made necessary verification on the same and was convinced with the reply given by the assessees. Hence no error could be attributed in the order passed by the learned AO. It also cannot be said that the learned AO had not made any enquiry on this issue. The law is very well settled that the learned Pr. CIT could invoke jurisdiction under Section 263 of the Act only when there is lack of enquiry ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd Smt. T. Lekha (assessees herein) were constructed for ₹ 5,81,04,300/- over a period of 4 years during the financial years 2012-13 to 2015-16. This sum was admittedly spent by M/s. Artech Realtors Pvt. Ltd. on behalf of the assessees. Admittedly, the assessees are directors in Artech Realtor Pvt. Ltd. having substantial voting power of more than 10 per cent. It is also not in dispute that M/s. Artech Realtors Pvt. Ltd. is engaged in the business of construction of residential projects. To evidence this fact, the learned A.R. also placed a copy of the Balance Sheet of M/s. Artech Realtors Pvt. Ltd. as on 31.03.2013. 4. Assessment in case of these assessees were framed under Section 153C r.w.s. 143(3) of the Act on 20.10.2016 in th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion is carried out in the normal course of business of a company, even though said activity is carried out for the Directors of the said company, there cannot be applicability of provisions of Section 2(22)(e) of the Act as it would fall within the exception clause. Hence in these circumstances, the cost of construction of residential house carried out in the normal course of business by M/s. Artech Realtors Pvt. Ltd. on behalf of the directors cannot be construed as loan or advance falling within the meaning of Section 2(22)(e) of the Act in the facts and circumstances of the instant case. Hence the action of the learned Pr. CIT in invoking the provisions of Section 263 of the Act for invoking the provisions of Section 2(22)(e) Act in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uction at ₹ 5,81,04,300/-. 8. When all these facts were confronted to the learned D.R., he vehemently argued that the learned AO had passed completely non speaking orders both under Section 153A in the case of Shri Ashok Thankappan Nair and under Section 153C in the case of Smt. T. Lekha. Hence the Pr. CIT is fully justified in invoking the provisions under Section 263 of the Act and setting aside the order of the learned AO. We are unable to comprehend ourselves to accept this argument in as much as the learned Pr. CIT has nowhere in his order pointed out any error in the order passed by the learned AO. It is a fact which staring on us that M/s. Artech Realtors Pvt. Ltd. had carried out the construction activity of the residential ..... X X X X Extracts X X X X X X X X Extracts X X X X
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