TaxTMI 
TaxTMI 
TaxTMI 
2023 (12) TMI 767
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....es of natural justice. 1.2 The order passed by Under Section. 263 on 01.03.2023 by Pr. CIT-3, A'bad holding the order of assessment passed under Section 143(3) on 08.10.2020 as erroneous and prejudicial to the Revenue is illegal and unlawful. The ld. Pr. CIT has erred in law and or on facts in invoking the powers of revision under Section 263 of the Act, since the condition precedent were not satisfied. 2.1 The ld. Pr. CIT has grievously erred in law and or on facts in holding the order of assessment passed under Section 143(3) on 08.10.2023 by AO to the extent of claim of deduction under Section 80GGC was erroneous and prejudicial to the interest of the Revenue for want of adequate inquiry and on merits held to be inadmissible. 2.2 That the in the facts and circumstances of the ld. Pr. CIT ought not to have held that the order of assessment passed under Section 143(3) on 08.10.2020 by AO to the extent of claim of deduction u/s 80GGC was erroneous and prejudicial to the interest of the Revenue for want of proper inquiry and on merits held to be inadmissible. 2.3 The ld. Pr. CIT has grievously erred in law and or on facts in relying upon the material, statements etc. relatin....
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....d name-wise list, it was observed that above list does not include the name of assessee for three different receipts which clearly proves that donation is bogus. Principal CIT also noted that Search action under Section 132 of the Act was carried out on 07.09.2022 in multiple locations including APNA DESH PARTY, it's related persons and other layering dummy entities/exit providers. The findings emanating from search action and post search investigation as well as survey action undertaken in the case of controller of dummy entities established the allegation of involvement, inter-alia, of APNA DESH PARTY in the racket of bogus donation in connivance with the dummy/paper entities facilitating accommodation entries to the donors. The search under Section 132 of the Act was carried out by ADIT, Ahmedabad, and as per report received from Investigation Wing, above referred party was receiving bogus donations in lieu of cash. Further statement of Abdul Razzak B Pathan, President of "Apna Desh Party", it became clear that whatever purchase/expenditure have been claimed to have made by APNA DESH PARTY from the entities enlisted above are non-genuine and merely book entries. Principal CIT ob....
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.... to the interests of the Revenue and directed the assessing officer to pass fresh assessment order after calling for additional details/evidences as required for verification of the issue. 5. The assessee is in appeal before us against the aforesaid order passed by principal CIT setting aside the assessment order under Section 263 of the Act. The counsel for the assessee submitted that adequate opportunity was not provided to the assessee both during the course of search as well as revision proceedings under Section 263 of the Act. Further, the counsel for the assessee submitted that the observations made by the Principal CIT were general observations regarding the modus operandi of the "Apna Desh Party" in question and no specific allegation has been made against the assessee. The counsel for the assessee relied on the case of Smt. Shardaben B. Patel112 taxmann.com 118 (Ahmedabad - Trib.) wherein the Ahmedabad Tribunal held that where Principal Commissioner invoked revision under Section 263 on ground that an information was received from DIT (Investigation) that long term capital gain (LTCG) earned by assessee on sale of shares was bogus and accordingly, disallowed claim of asse....
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....hus, Commissioner was justified in treating assessment order erroneous and prejudicial to interest of revenue. The Supreme Court dismissed the special leave petition filed against impugned order passed by High Court. In the case of Deniel Merchants (P.) Ltd.95 taxmann.com 366 (SC), the Hon'ble Supreme Court dismissed SLP order of High Court that where Assessing Officer did not make any proper inquiry while making assessment and accepting explanation of assessee insofar as receipt of share application money was concerned, Commissioner rightly set aside such assessment order under Section 263. In the case of Principal CIT vs. Swati Bajaj 139 taxmann.com 352 (Calcutta), the Hon'ble High Court held that where Assessing Officer was fully aware of investigation which was being done on penny stock companies and failed to take note of such report to put assessee on notice and commence an enquiry by calling upon assessee to justify genuineness of claim of LTCG/STCL and merely accepted submission that stock broker was a public sector company in such case assumption of jurisdiction under Section 263 by Commissioners was fully justified. In the case of Pratik Syntex (P.) Ltd.94 taxmann.com....