TaxTMI 
TaxTMI 
2017 (3) TMI 1249
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....ained that the assessee was under a bona fide impression that the issue with regard to verification of receipt of share capital and share premium by the Assessee during the relevant previous year which was subject matter of revision in the impugned order of the CIT, the issue was set aside to the AO for consideration and that the assessee would get a fresh notice from the AO for verification of the said issue. In this regard our attention was drawn to the fact that even the AO issued a notice dated 03.06.2016 on the basis that direction in the order u/s 263 of the Act was to make proper inquiries with regard to the receipt of share capital and share premium by the assessee. However it later transpired that in the impugned order the CIT has ....
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....u/s 263 of the Act on the basis of material available on record. The CIT in the aforesaid order observed as follows :- "7. As has been mentioned above, no enquiry was conducted during the course of assessment proceeding to ascertain genuineness of transactions and capacity / creditworthiness of the creditor share subscribers. The receipt of unusually high share premium without there being any justification for such high valuation itself establishes that the transaction is not genuine unless otherwise controverted. The assessee has not been able to, either at the time of assessment proceeding or during the instant proceeding, furnish any material or submit any explanation with respect to justification for huge share premium. The conclusio....
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....e assessee for the A.Yr. 2012-13. The assessment order dated 07.03.2014 is cancelled and the A.O. is directed to pass consequential order in view of above finding and proceed further as per law." 6. Aggrieved by the order of the CIT the assessee has preferred the present appeal before the Tribunal. 7. The ld. Counsel for the assessee brought to our notice ground no.5 and 6 raised by the assessee which reads as follows :- "5. For that the Ld. CI.T erred in enhancing the assessment by Rs. 60 Crores when in the show cause there was nothing to show that the Ld. CIT after making proper enquiry was of the opinion that the said amount of share capital should have been added in the total income. 6. For that the Ld. CI.T erred in making ....
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....usion to the enquiry conducted by him gives power to the CIT to revise such assessment order, by holding that :- i) the enquiry conducted by the AO in such cases can't be construed as a proper enquiry; ii) CIT u/s 263 can set aside the assessment order and direct the AO to conduct a thorough enquiry, notwithstanding the jurisdiction of the AO in making enquiries on the issues or matters as he considers fit in terms of section 142(1) and 143(2) of the Act, which is relevant only up to the completion of assessment ; iii) Inadequate inquiry conducted by the AO in the given circumstances is as good as no enquiry and as such, the CIT was empowered to revise the assessment order ; iv) The order of the CIT is no....
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....rporation. G. 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. H. 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. I. 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. J. Refusal by the Revenue to accept the written submissions of the assessee sent after the conclusion of ....
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....10. We have considered his submissions and are of the view that as was done in the similar group of cases which was considered by this Tribunal and in which the lead order was passed in the case of Subhlakshmi Vanijya Pvt. Ltd. (supra), the CIT ought to have set aside the order of AO and direct the AO to make fresh enquiry with regard to the receipt of share capital and share premium by the assessee during the previous year. As rightly pointed out by the ld. Counsel for the assessee, since the proceedings u/s 263 of the Act were concluded ex-parte, the Assessee had no occasion to place material to satisfactorily explain the receipt of share capital and share premium by the Assessee. There was however no material on the basis of which the CI....