2014 (1) TMI 289

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....eals are identical in nature, hence we will dispose off both the appeals with this common order. For the sake of convenience, the facts have been taken from ITA No.3854/M/13. ITA No.3854/M/13 2. The assessee has contested the action of the CIT in directing the AO to make de-novo assessment after conducting enquiries on the issues as discussed in the impugned order invoking provisions of section 263 of the Income Tax Act. 3. The issue involved in this case is relating to share application money received by the assessee during the year under consideration. The Assessing Officer (AO) during the assessment proceedings asked the assessee to submit the necessary details and clarification to prove the genuineness of transactions relating to sha....

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.... AO was erroneous and as it was made without making enquiries and without application of mind. He therefore set aside the same and remanded the matter to AO for de-novo assessment after conducting necessary enquiries. 4. We have heard the ld. representatives of both the parties and also have gone through the records. At the outset the ld. A.R. has brought our attention to the fact that on identical issues, citing similar reasons, jurisdiction under section 263 was invoked by the ld. CIT in the case of other group concern of the assessee i.e. M/s. Turakhia Ferromet Pvt. Ltd. & M/s. Standard Conduit Pvt. Ltd., but in appeal the Tribunal has set aside the order of the CIT passed under section 263 of the Act. It has been further submitted that....

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....s been further observed by the tribunal that if one of the conditions is absent, recourse cannot be had to section 263(1) of the Act. The Tribunal, after recording the details of various notices issued and enquiries made by the AO and further the reply and evidences furnished by the assessee, observed that the facts of the case were indicative that the assessment order was passed by the AO after considering the relevant material evidences brought on record and after due application of mind and even after making necessary enquiries and satisfying himself about the genuineness of the transactions. It was not the case where the AO had made the assessment order without making the necessary enquiries. It has been further observed by the Tribunal....