9911796707
TMI Blog2023 (3) TMI 329X X X X Extracts X X X X X X X X Extracts X X X X ..... order passed u/s. 143(3) read with sec. 263 of the Act by the AO, which is neither erroneous nor prejudicial to the interest of the revenue. 3. Briefly stated facts in brief are that the return of income 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. 26 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ciate the facts on record especially the assessment order framed u/s. 143(3) read with 263 of the Act dated 09.08.2016 wherein the AO has appended a detailed findings that necessary details 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... decision of jurisdictional High Court in the case of PCIT Vs Bhagwati vintrade Pvt Ltd(supra). We observe on the basis of the records before us that Ld. Pr. CIT has revised the assessment 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the transaction were made through banking channel and duly recorded in the books of accounts of the parties. Accordingly it is inferred that (i) As the shareholders are private limited 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. 13 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... proceeding arising out of the second round of proceedings under section 263 of the Act. The learned Tribunal has carefully considered the factual position and noted that 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 f ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
