|The Tax Publishers2021 TaxPub(DT) 0654 (Kol-Trib)
INCOME TAX ACT, 1961
Section 263 Section 68
Assessee by furnishing evidences proved genuineness of the transactions of receipt of share application money and it was not a case of lack of enquiry, nor a case of inadequate enquiry. AO had taken a plausible view and, therefore, assessment order could not be treated as erroneous and prejudicial.
Revision under section 263 - Erroneous and prejudicial order - Alleged lack of enquiry as regards receipt of share application money -
Pr. CIT held assessment order passed by AO was erroneous, insofar as prejudicial to the interest of the revenue on account of lack of enquiry as regards share application money received by assessee. Held: Persons representing share applicant companies had appeared before AO in the second round of assessment proceedings, in response to notice under section 131, and their statements were recorded on oath. The share applicant companies had also responded to notice under section 133(6) by furnishing the information called for. The information filed by share applicant companies were Copy of Income Tax Return/Acknowledgement; Copy of annual audited accounts; Balance sheet and profit & loss a/c statement; Copy of Bank Statement. These documents prove the genuineness of the transactions. Accordingly, it was not a case of lack of enquiry, nor a case of inadequate enquiry. AO had taken a plausible view and, therefore, assessment order could not be treated as erroneous and prejudicial to the interest of revenue.
Applied:Amritrashi Infra Private Ltd. v. Pr. CIT-4, Kolkata. ITA No. 838/Kol/2019; assessment year 2012-13 Order, dated 12-8-2020 : 2020 TaxPub(DT) 3145 (Kol-Trib) and Omkar Infracon (P) Ltd. v. ITO. Ward 12 (2) ITA No. 896/Kol/2019, assessment year 2012-13, Order, dated 18-3-2020 : 2020 TaxPub(DT) 2038 (Kol-Trib). Relied:Director of Income Tax v. Jyoti Foundation (2013) 357 ITR 388 (Delhi High Court) : 2013 TaxPub(DT) 2463 (Del-HC), ITO v. DG Housing Projects Ltd. (2012) 343 ITR 329 (Del-HC) : 2012 TaxPub(DT) 1727 (Del-HC) and CIT v. J.L. Morrison (India) Ltd. (2014) 366 ITR 593 (Cal) : 2014 TaxPub(DT) 2646 (Cal-HC).
FAVOUR : In assesee's favour.
A.Y. : 2011-12
IN THE ITAT, KOLKATA BENCH
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