9911796707
TMI Blog2022 (6) TMI 141X X X X Extracts X X X X X X X X Extracts X X X X ..... rred by the law of intimation and liable to be quashed. 2.(a) For that on the facts and in the circumstances of the case, the order passed by the Ld. Pr. CIT u/s 263 of the Act is bad in law and is liable to be quashed. (b) For that on the facts and in the circumstances of the case the Ld. Pr. CIT was not justified in initiating proceedings u/s 263. 3.(a) For that the Ld. Pr. CIT erred in exercising the power of revision for the purpose of directing the AO to hold another investigation when the AO had complied with the directions of the predecessor Principal CIT, Kolkata-4 in the preceding order u/s 263 passed on 15.12.2016. (b) without prejudice to the preceding grounds, the issue before the Ld. CIT was debatable, as such, the Ld. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sion u/s 263 on 15.12.2016 wherein the assessment order was set aside and Ld. AO was directed to carry out proper examination of the books of accounts including bank accounts of the assessee as well as that of investor entities and make a fresh assessment. The Ld. AO was also directed to examine the genuineness of source of fund of share capital and premium and complete the assessment on the basis of outcome of the enquiry. 4. Pursuant to aforesaid directions, an assessment was framed by Ld. AO u/s 143(3) r.w.s. 263 on 29.12.2016. During the course of assessment proceedings, Ld. AO issued summons u/s 131 to each of the investor entities. In response to the same, the respective directors of investor entities appeared before Ld. AO and there ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s of the transactions. Certain similar other observations were made and on the basis of the same, it was concluded that the assessment order suffers from lack of independent and adequate enquiry on the aforesaid issue. 6. The assessee refuted the allegations, inter-alia, by submitting that summons were issued u/s 131 and directors of all the 4 investor entities appeared before Ld. AO and confirmed the transactions in recorded statement. The transactions were duly supported by sufficient documentary evidences as already observed by Ld.AO in the assessment order. Therefore, there was no such alleged failure on the part of Ld. AO to ascertain the genuineness of sources of funds invested by the shareholders. Regarding high premium, the same wo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... filed the requisite documentary evidences in the shape of Income Tax Returns acknowledgement, audited financial statements, PAN copies, Bank statement, allotment advice, source of fund of investor entities. After examining all this material, Ld. AO came to a conclusion that identity, genuineness and creditworthiness of investor entities were duly established by the assessee and therefore, these transactions were accepted to be genuine transactions. The fact that due enquiries were made by Ld. AO is also evident from the perusal of order-sheet entries of the assessment proceedings. Therefore, it could be concluded that the issue of receipt of share capital and share premium was specifically examined by Ld. AO with due application of mind an ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
