TMI Blog2022 (6) TMI 141X X X X Extracts X X X X X X X X Extracts X X X X ..... verification. Simply because the revisionary authority felt that various other aspects were also to be examined or the same very issue was to be examined from another angle, the same could not be a valid ground to revise the assessment order. If this is allowed, there would be no end to litigation and there would not be finality to the assessment. The pre-conditions to revise the order is that there should be lack of enquiry on the part of Ld. AO which made the order erroneous as well as prejudicial to the interest of the revenue - as noted in preceding paragraphs, the issue was duly examined and subjected to due verification by Ld. AO during earlier assessment proceedings and there was due application of mind to the issue. This being so, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , the issue before the Ld. CIT was debatable, as such, the Ld. Pr. CIT did not have the jurisdiction to initiate another proceedings u/s 263. 4. For that the Ld. Pr. CIT wrongly held that an order passed consequent to order u/s 263 is automatically in favour of the revenue. 5. For that the Ld. Principal CIT was not justified in prescribing as to how to conduct the enquiries to ascertain the identity and creditworthiness of shareholders. 2. The Ld. AR assailed the revision on the ground that revision has been exercised for the second time to re-examine the same issue which was already been subjected to examination and verification during earlier assessment proceedings. The Ld. AR further submitted that the claim was accepted by Ld. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pective directors of investor entities appeared before Ld. AO and there statements were recorded. The transactions carried out by all the investor entities were confirmed. The assessment order take note of the fact that all documents viz. Income Tax Returns acknowledgement, audited financial statements, PAN copies, Bank statement, allotment advice, source of fund of investor entities were produced / explained. Further, the documents were verified and identity, genuineness and creditworthiness of investor entities were duly established by the assessee. Accordingly, these transactions were accepted to be genuine transactions. The Ld. AR has also placed on record copies of order sheet entries of the assessment proceedings in support of the fac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of funds invested by the shareholders. Regarding high premium, the same would be the prerogative of Board of directors to decide the premium amount and it is the wisdom of the shareholders whether they want to subscribe to such shares as held by Mumbai Tribunal in Gagandeep Infrastructure Private Ltd. (ITA No.5784/Mum/2011). Further, the provisions of Sec.56(2)(vii) as brought in by Finance Act 2013 were effective only from 01/04/2013 and the same would not apply to year under consideration. However, all these arguments could not convince Ld. Pr. CIT and finally, Ld. AO was directed to re-examine the issue and frame a fresh assessment in the light of observations made in revisionary order. Aggrieved as aforesaid, the assessee is in furth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are premium was specifically examined by Ld. AO with due application of mind and accepted after carrying out necessary enquiries and verification. Simply because the revisionary authority felt that various other aspects were also to be examined or the same very issue was to be examined from another angle, the same could not be a valid ground to revise the assessment order. If this is allowed, there would be no end to litigation and there would not be finality to the assessment. The pre-conditions to revise the order is that there should be lack of enquiry on the part of Ld. AO which made the order erroneous as well as prejudicial to the interest of the revenue. However, as noted in preceding paragraphs, the issue was duly examined and subje ..... X X X X Extracts X X X X X X X X Extracts X X X X
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