TaxTMI 
TaxTMI 
TaxTMI 
2022 (4) TMI 1543
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....fective ground/grounds challenged by the appellant assessee, as under; "1. In the facts and circumstances of the case and in law, the ld. Principal Commissioner of Income-tax has erred in initiating proceedings u/s 263 of the Income-tax Act, 1961 on the basis of audit objection and accordingly initiation of proceedings is illegal and without jurisdiction." "2. Without prejudice to the above, the ld. Principal Commissioner of Income-tax has erred in setting aside proceedings without considering appellant's reply filed on 24/03/2021." "3. In the facts and circumstances of the case and in law, the ld. Principal Commissioner of Income-tax has erred in setting aside the assessment order dated 10/01/2018 and in remanding it back to the Assessing Officer for fresh adjudication." "4. In the facts and circumstances of the case, the impugned order is arbitrary and bad in law." "5. The appellant craves leave to add, alter or omit all or any grounds of appeal in the interest of justice." (Emphasis Supplied) 4. Before we set the ball rolling, we shall make a mention that, the instant appeal was filed after the expiry of statutory period with a delay of 74 days (approx.), howe....
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....nterest of the revenue within the preview of section 263 of the Act. 7.2 During the course of escapement assessment proceedings, a statutory notice u/s 148 was issued & served on 20/03/2016 and pursuant thereto a return of income was filed on 23/04/2018 declaring total income of Rs.12,78,880/-. Considering the evidential material the Ld AO observed that, the assessee company during the year under consideration has received subscription of shares from the following two companies at a substantial high premium; Sr Name of the Subscriber Value of Per Share Subscription Details Face Value Premium No of shares Total Investment (Amt) 1 Oven Business Pvt Ltd 10 190 50,000 1,00,00,000 2 Blue Bird Suppliers Pvt Ltd 10 190 50,000 1,00,00,000 7.3 After a detailed inquiry into the capacity and the financial health of subscriber companies, the Ld AO evinced that, these companies were financially unsound and exhibit no proven track records of their operational efficiency to generate any funds capable of deploying as investment into the appellant company and such findings are categorically placed as in integral part of assessment order at para 2 on page 3 of the assessment or....
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....lication of mid for reaching any conclusion would certainly lead to held the order erroneous so far as prejudicial to the interest of revenue." 8. Before riding the cycle, it shall be necessary to tabulate the occurrence as; Sr Particulars VSVA Status Audit Objection 263 Form 1 Form 3 Report Direction SCN Order 1 Date - 11/11/2020 22/12/2020 01/02/2021 05/03/2021 28/03/2021 2 Authority PCIT, Raipur-1 PCIT, Raipur-1 PCIT, Raipur-1 9. From the aforestated chronological events, we have noted that, after the assessee has applied for VSVA and received the form no 3 from the designated authority viz the Ld PCIT, Raipur-1, the revisionary proceedings were initiated by same jurisdictional Ld PCIT, Raipur-1 and in-spite of the fact being brought to his notice Ld PCIT, Raipur-1 concluded the revisionary proceedings desultorily. 10. The Ld AR taken us through relevant pages of paper book to impress that, the action of revisionary action wasn't warranted and placing reliance on judicial precedents supported the grounds raised, whereas the Ld departmental representative [for short "DR"] supported the 263 revisionary order for failure to conduct enquir....
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.... paramount importance to note that, an incorrect assumption of facts or an incorrect application of law or passing an order without application of mind or without applying the principle of natural justice, shall discretely be sufficient to hold the order being erroneous. Albeit the term prejudicial to the interests of the revenue is not at all defined in the Act, but is needs to be understood in its ordinary meaning and it is of wide import and is not confined to mere loss to an ex-chequer. 11.5 Having said so, where the revisionary proceedings are concluded entirely in concurrence of assessment proceedings and thereby betokening the mistake apparent on the face of the assessment order, where concluded finding of assessment remained untaxed, shall clearly validate the revisory action and jurisdiction u/s 263 for the protection loss of revenue to the ex-chequer, and not otherwise. 11.6 In the light of ration laid down by Hon'ble Supreme Court of India, we have the audacity to summarise the inferential but harmonious analysis of revisionary provision laid in section 263 of the Act, into a five steps "Queen Principle", falling out of which shall debark authorities from assuming revi....