AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2024 (3) TMI 100
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....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. We find that there was no delay in filing the appeal as per the Hon'ble Supreme Court's order (supra), therefore the appeal is taken for adjudication. 3. The only issue raised by the assessee is against the invalid exercise of jurisdiction by ld. Pr. CIT u/s 263 of the Act thereby revising assessment framed by the Assessing Officer (in short ld. 'AO') vide order dated 21.12.2018 u/s 144 of the Act. 4. The facts in brief are that....
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....by ld. Pr. CIT as having been correctly assessed by the AO whereas the assessment order was revised so far as the second issue is concerned by directing the AO to frame the assessment afresh. 5. The ld. A/R submitted before us that ld. Pr. CIT has erred in setting aside the assessment framed by the AO wherein a considered view has been taken after examining the evidences such as bank statement of the account of the assessee maintained with the Development Credit Bank, Shakespeare Sarani, Kolkata and the AO after examining all the credits and debits entries in the said statement observed that the total credits in the bank were Rs. 6,25,69,000/- and almost the entire amount has been transferred to various parties through RTGS and cheques and....
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....taken by the AO to assess the income at the rate of 1.5% clearly attracts the provision of Section 263 of the Act as the assessment framed is erroneous and prejudicial to the interests of the revenue for the reason that the entire amount of credits in the bank account should have been added as unexplained cash credit. 7. After hearing the rival contentions and perusing the material on record, we find that the AO has examined this issue during the course of assessment proceedings after examining the bank statement of the assessee maintained with Development Credit Bank, Shakespeare Sarani, Kolkata and observed that total credits as appearing in the bank of the assessee were Rs. 6,55,69,000/- which was immediately transferred/transmitted to ....
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....tion Wing that, firstly, above named assessee companies have been found to be beneficiary of accommodation entry in any search or survey in the case of entry operator; and secondly, any inquiry has been made in the case of the assessee companies wherein it has been found that these companies have taken any accommodation entry by rotating their unaccounted money or income. Though there is a rotation/movement of money from one company to another through web of group companies of Bhushan Energy Ltd. and the entities owned by common shareholder, which is a subsidiary flagship Company, Bhushan Steel Ltd. now merged with Tata Steels Ltd. The fund have flown from Bhushan Energy Ltd. through maze of group companies whereby the funds which has been ....
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....egs to stand." 8. Similarly, the case of the assessee is also finds support from the decision of Hon'ble Allahabad High Court in the case of Prem Castings Pvt. Ltd. vs. CIT (supra) wherein the Hon'ble court has held as under: "One exception where such addition may not be made at the hands of the private limited company may be where such an addition may be proposed to be made at the hands of a private limited company at the very beginning i.e., at a time when it may not have conducted any business so as to give rise to any income or money to make such an investment. In that case, addition may be warranted in the hands of the directors etc. However, that is not the case here. No other fact has been pleaded or found to exist as may save the....