2023 (2) TMI 743

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....y has pointed out that the appeal is time barred, however, in view of the decision of the Hon'ble Supreme Court in the case of Miscellaneous Application No. 665 of 2021 in SMW(C) No. 3 of 2020, the period of filing appeal during the COVID-19 pandemic is to be excluded for the purpose of counting the limitation period. In view of this, the appeal is treated as filed within the limitation period. 3. The only issue raised by the assessee is against the invalid exercise of revisionary jurisdiction by the ld. Pr. CIT u/s 263 of the Act without fulfilling the conditions as envisaged u/s 263 of the Act. 4. The facts in brief are that the assessee filed the return of income on 01/10/2010 declaring total income of Rs.12,11,824/-. The return of the....

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....IT, on perusal of the assessment records, observed that notice issued u/s 133(6) of the Act to M/s. Hemlata Creation Pvt. Ltd. was returned unserved resulting in non-verification of the genuineness of the share subscription of Rs.10,00,000/- during the assessment proceedings. The ld. Pr. CIT further observed that the assessee had taken a loan of Rs.5,30,88,766/- during the year and repaid the same. However, the Assessing Officer has not conducted any enquiry in respect of the identity, creditworthiness of the loan creditors and genuineness of the transactions along with its repayment. The ld. Pr. CIT issued a showcause notice u/s 263 of the Act to the assessee requiring to showcause as to why the assessment framed u/s 143(3)/147 of the Act ....

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.... relied upon a series of decisions as under:- * Malabar Industries Co. Ltd. vs. CIT 243 ITR 83 * CIT vs. Max India Ltd. 295 ITR 282 (SC) * J.L. Morrison 366 ITR 593 (Calcutta) * Gabriel India Ltd. 203 ITR 108 (Bom.) 5. The ld. D/R relied on the order of the ld. Pr. CIT. 6. We have heard rival contentions and perused the material available on record. The undisputed fact is that the issue was examined in the original assessment proceedings by calling for explanations from the assessee as well as from the investor parties which are available on record. We note that the ld. Pr. CIT has invoked jurisdiction u/s. 263 of the Act on two points whereas in the revisionary order only one issue was raised with respect to Rs. 10,00,000/- w....