2023 (4) TMI 621

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....tion 263 of the Act is bad, both in the eye of law and on facts. 2. On the facts and circumstances of the case, the order passed by the learned Pr. CIT assuming jurisdiction under section 263 is bad in law in the absence of twin conditions of the order passed by the A.O. being erroneous as well as prejudicial to the interest of the Revenue having been satisfied. 3(i). On the facts and circumstances of the case, the learned Pr.CIT has erred both on facts and in law in ignoring the fact that the issues raised by him in notice under Section 263 were before the A.O. and as such the jurisdiction on these issues under Section 263 cannot be assumed by him. (ii). On the facts and circumstances of the case, the learned Pr.CIT has erred both on....

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.... staff salary, Rs.12,400/- on account of printing & stationary, Rs.20,260/- on account of vehicle running & maintenance charges, Rs.53,417/- on account telephone expenses and after making due enquiries as deemed fit, the AO made disallowance of Rs.70,000/- on account of expenses and determining the total income at Rs.2,76,380/-. 4. The case has been taken up for proceedings u/s 263 of the Income Tax Act, 1961 by the ld. PCIT by issuing a show cause which is as under: "3. As such, the order passed by the Assessing Officer vide order u/s 143(3) of the Income Tax Act, 1961 dated 21.03.2016 was clearly erroneous and prejudicial to the interest of the revenue, and therefore, proceedings u/s 263 of the Income Tax Act, 1961 were initiated and s....

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.... the identity of the depositors and their creditworthiness as there was no complete address, PAN, Copy of ITR of Bank statement which were necessarily to be provided by the assessee to ascertain the genuineness of the transactions, identity of the depositors and creditworthiness of the concerned parties." ......................... 7. In view of these facts, it is apparent that the assessment order under consideration is out rightly erroneous and patently prejudicial to the interest of the revenue as the Assessing Officer accepted the receipt of share application money to the tune of Rs.1,90,50,000/- without verifying the identity and creditworthiness of the depositors and genuineness of the transaction as the assessee had failed to disc....

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....penses found of personal nature on agreed basis. On going through the assessment records and details filed by the assessee during the assessment proceedings as available on records, it has been found that the assessee company shown share application money of Rs. 3,29,00,000/- as on 31.03.2013 as against Rs. 1.38,50,000/- as on 31.03.2012. The assessee company received share application money during the year under consideration from the following parties:- i) M/s Space Build Well India Pvt. Ltd, Rs. 60,00,000/- ii) M/s Latta Resorts Pvt. Ltd. Rs. 25,00,000/- iii) Sh. Calender Singh Rs. 50,00,000/- iv) M/s Common People Welfare Society Rs. 18,00,000/- v) Sh. Dinesh Bhardwaj, Sector-49 Rs. 12,50,000/- vi) M/s Sing....