TMI Blog2023 (3) TMI 329X X X X Extracts X X X X X X X X Extracts X X X X ..... based on that detailed enquiry on the issue accepted the investments made in the assessee company. Findings of the AO that while giving effect to the directions of the Ld. Pr. CIT, AO issued notice u/s. 142(1) of the Act to the assessee which was duly complied with by filing necessary documents and informations. We note that the AO also issued notices u/s. 133(6) on 12.07.2016 to the parties from whom the funds were raised by the assessee and verified the source of investments, identity and genuineness. The said investor companies duly responded to the said notice and thereafter the AO recorded his satisfaction accepting the said investments in the hands of the assessee. Considering the above facts, we are of the view that the jurisdict ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me was filed on 30.09.2012 declaring total income at NIL. The case of the assessee was selected for scrutiny and the assessment order u/s. 143(3) of the Act was framed vide order dated 13.03.2015 assessing the total income at Rs.2,23,64,110/-. Subsequently, the said order was revised by the Ld. Pr. CIT u/s. 263 of the Act vide order dated 01.06.2016 setting aside the assessment order to be framed de novo vide order dated 13.03.2015. The AO while giving effect to the order u/s. 263 of the Act passed the assessment u/s. 143(3) read with sec. 263 of the Act vide order dated 09.08.2016 assessing the total income at NIL. Subsequently, the Ld. Pr. CIT upon examination of the assessment records again observed that the order framed by the AO u/s. 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s and information from the assessee as well as from the shareholder companies were called by issuing notices u/s. 133(6) of the Act and also after issuing summon u/s. 131 of the Act to the director of the assessee company which were duly complied with and statements were also recorded and the identity and creditworthiness of the investor and genuineness of the transactions were duly proved. The Ld. AR submitted that Ld. Pr. CIT has exceeded his jurisdiction by wrongly invoking the revisionary jurisdiction to prove a case which did not suffer from the vice of lack of enquiry as is apparent from the detailed findings given by the AO in the assessment order framed in the first inning. The Ld. AR emphasized his arguments by relying on the decis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment on the ground lack of enquiry on the part of the AO into the issue of investment of share capital and share premium. However, we note that in the set aside assessment proceeding in the first inning the AO examined the issue in detail after calling information from the assessee as well as investors u/s 133(6) of the Act and based on that detailed enquiry on the issue accepted the investments made in the assessee company. The relevant findings of the AO in the assessment order as framed u/s 143(3) r.w.s. 263 of the Act are reproduced as under: And considering the facts and circumstances of case as discussed above and as per submission of assessee, the assessment order was passed without making inquiries and verification which would ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... imited companies and registered with the Ministry of Corporate Affairs they have an estabslished identity. (ii) Details of source of funds have been submitted by all the shareholders. (iii) None of applicants have been made otherwise than by banking channels. (iv) All the investors have submitted their Annual reports and I. T. Returns. (v) In all the cases the investments is duly reflected in the Annual Accounts of the investor. (vi) Moreover, summon u/s. 131 was also issued to the director of the company. In response to the summon u/s. 131 the director of the company appeared and give statement along with relevant papers. In view of the above observations, the total income of the assessee is computed as p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat assessing officer has followed the direction issued in the earlier order passed by the Section 263 of the Act. The Assessing Officer has issued summons under Section 131 of the Act to the directors of the Shareholding Company M/s Laxmi Timber Pvt. Ltd. in consonance with the direction issued by the Principal Commissioner of Income Tax under Section 263 of the Act. This finding would be seen from paragraphs 5 to 7 of the assessment order. Thus the learned Tribunal on re-verification of the facts found that this is not a case of non-application of mind nor this is a case of failure to reappreciate the facts and concluded that the view taken by the assessing officer was a plausible view. That apart we note that the assessing officer conduc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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