2024 (4) TMI 17

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.... to as the Ld. PCIT) dated 30.03.2019 u/s 263 of the Act. 2. The facts, in brief, are that the assessee filed its return of income declaring an income of Rs. 1,49,470/- on 27.09.2014. The case was assessed u/s 143(3) of the Act at an income of Rs. 1,49,470/- on 08.12.2016 by ITO, Ward 1(1), Gurgaon. After examining the records, the ld. PCIT, Gurgaon, passed an order u/s 263 of the Act on 30.03.2019 vide which it examined the issue that during the year under consideration, the assessee company had issued total 1000000 Compulsorily Convertible Debentures at Rs. 249 per share/debenture against the face value of Rs. 10/- each and received premium of Rs. 24,90,00,000/-. The AO was required to examine and verify the justification of share premiu....

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....ner, Gurgaon but order u/s 143(3) r.w.s to 263 is passed by ITO, Ward 1(3),New Delhi. 3) That on the basis of facts and circumstances of the case, Hon'ble CIT has erred in law in invoking the section 263 on the mere basis of audit objections. 4) On the facts and circumstances of the case, the learned CIT has erred in law and facts ignoring the fact that the proceeding u/s 263 cannot be used for substituting opinion of the Id. AO by that of CIT. 5) That on the facts and circumstances of the case, the order passed by the learned Pr. Commissioner of Income Tax (CIT) under section 263 of the Act is non-application of mind of Hon'ble Pr. CIT as Hon'ble Pr. CIT is on the wrong facts i.e the assessee company has issued 10,00,000/- Compulsory....

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....he notices have been issued repeatedly. It is reported on the notice that 'there is no such person at the address.' Notices have also been issued by e-mail. No more opportunity is justified. The ld. DR has supported the orders of the ld. tax authorities below. 5. Appreciating the matter on record, it comes up that the assessment order dated 08.12.2016 u/s 143(3) does not have a word with regard to what was the nature of scrutiny assessment, what query, if any, were raised and based upon what material the returned income was accepted. The ld.PCIT has thoroughly examined the transaction of issuance of the shares/convertible debentures and found that the AO has not examined any aspect of the genuineness of this investment in the assessee comp....