2016 (7) TMI 1641 - AT - Income Tax

Consolidated Appeals under Section 263 Upheld for Low-Income Companies

The Tribunal consolidated appeals challenging CIT orders under section 263 of the Income-tax Act due to similar facts. Assessees repeatedly sought ... Revision u/s 263 - Bogus share transactions - returns were filed by such companies with meagre income; intimations were issued u/s 143(1); thereafter notices u/s 148 were issued either at the instance of such companies divulging a paltry escapement of income or otherwise ; assessment orders were passed u/s 143(3) read with section 147 after making nominal additions - HELD THAT:- It is relevant to mention that we have disposed of more than 500 cases involving same issue through certain orders with the main order having been passed in a group of cases led by Subhlakshmi Vanijya Pvt. Ltd. [2015 (8) TMI 174 - ITAT KOLKATA] as held Contention of the assessee that since the AO of the assessee-company was not empowered to examine or make any addition on account of receipt of share capital with or without premium before amendment to section 68 by the Finance Act, 2012 w.e.f. A.Y. 2013-14 and hence the CIT by means of impugned order u/s 263 could not have directed the AO to do so, is unsustainable. Failure of the AO to give a logical conclusion to the enquiry conducted by him gives power to the CIT to revise such assessment order. The notices u/s 263 were properly served through affixture or otherwise. Further the law does not require the service of notice u/s 263 strictly as per the terms of section 282 of the Act. The only requirement enshrined in the provision is to give an opportunity of hearing to the assessee, which has been complied with in all such cases. CIT having jurisdiction over the AO who passed order u/s 147 read with section 143(3), has the territorial jurisdiction to pass the order u/s 263 and not other CIT - Addition in the hands of a company can be made u/s 68 in its first year of incorporation. After amalgamation, no order can be passed u/s 263 in the name of the amalgamating company. But, where the intention of the assessee is to defraud the Revenue by either filing returns, after amalgamation, in the old name or otherwise, then the order passed in the old name is valid.Order passed u/s 263 on a non-working day does not become invalid, when the proceedings involving the participation of the assessee were completed on an earlier working day. Order u/s 263 cannot be declared as a nullity for the notice having not been signed by the CIT, when opportunity of hearing was otherwise given by the CIT. Refusal by the Revenue to accept the written submissions of the assessee sent after the conclusion of hearing cannot render the order void ab initio. At any rate, it is an irregularity. Search proceedings do not debar the CIT from revising order u/s passed u/s 147 - Decided against assessee. Issues Involved:Appeals challenging orders passed by CIT u/s 263 of the Income-tax Act, 1961 based on similar facts and common grounds.Analysis:1. The assessees challenged separate orders passed by the CIT u/s 263 of the Income-tax Act, 1961. The Tribunal decided to consolidate the appeals due to similar facts and grounds.2. The assessees repeatedly sought adjournments for their appeals, but on the latest hearing date, no one appeared. The issues raised were deemed covered against the assessees by previous tribunal orders.3. The cases involved companies with low income filing returns, receiving notices u/s 148 for income escapement, and facing assessments with nominal additions. CITs passed orders u/s 263, leading to appeals before the Tribunal.4. The Tribunal disposed of numerous cases with similar issues, referring to a key order involving Subhlakshmi Vanijya Pvt. Ltd. for A.Y. 2009-10.5. The Tribunal reiterated conclusions from a previous order, including the CIT's power to revise assessments due to inadequate inquiries by AOs, proper service of notices u/s 263, and the jurisdiction of the CIT over the AO who passed the order.6. Various conclusions were drawn, such as the validity of orders passed after amalgamation, the timing of limitation periods, and the impact of search proceedings on CIT's revision powers.7. Based on the previous order's view, the Tribunal upheld all impugned orders, leading to the dismissal of all appeals.This detailed analysis outlines the Tribunal's decision on the appeals challenging CIT's orders under section 263 of the Income-tax Act, emphasizing the consistency of facts and grounds across the cases and the application of previous conclusions to uphold the impugned orders.