TaxTMI 
TaxTMI 
2023 (4) TMI 621
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....arned Pr. Commissioner of Income Tax (CIT) under Section 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 ....
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....it & loss account, the AO noticed that the assessee has claimed expenses of Rs.5,28,000/- on account of 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 ....
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.... 4. The Assessing Officer erred in accepting the genuineness of share application money of Rs.1,90,50,000/- (3,29,00,000 - 1,38,50,000) without verifying 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 ....
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....allotted shares and introduction of capital in NBFC/investment Companies. Subsequently the assessment was completed u/s 143(3) on 21.03.2016 and income was assessed at Rs. 2,76,380/- after addition of Rs. 70,000/- on account of disallowance of expenses 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....