TaxTMI 
TaxTMI 
2025 (7) TMI 1485
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....ails submitted during assessment by the appellant is without any justification to invoke revisional jurisdiction. 3. Ld. Pr. CIT erred in law and on facts holding that assessment completed without any inquiry on the points for which case was selected for scrutiny as erroneous and prejudicial to the interest of revenue failed to appreciate clear difference between "Lack of inquiry" and "Inadequate inquiry." 4. Ld. Pr. CIT erred in law and on facts invoking revisional jurisdiction just because of assessing officer not elaborating in assessment order responses to the queries raised that was properly responded by the appellant during the assessment proceedings. 5. Ld. Pr. CIT erred in law and on facts revising scrutiny assessment order relying on judgments of Hon'ble apex court rendered on completely different set of facts. 6. Ld. Pr. CIT erred in law and on facts revising scrutiny assessment order merely because he held a different opinion than assessing officer in the matter. 7. Ld. Pr. CIT erred in law and on facts holding assessment order as erroneous and prejudicial to the interest of revenue since assessing officer failed to inquir....
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....e, which is reproduced by the ld.Pr.CIT in the revisionary order under section 263 of the Act, at page no.2 to 4 of the order. In response to the notice of the ld.Pr.CIT, the assessee submitted written submissions before the ld.Pr.CIT, which is reproduced by the ld.Pr.CIT, in para 3 (page no.5 to 16) of the revision order. Thereafter, the ld.Pr.CIT has issued another notice dated 20.01.2024, which is placed at page no.17 of the revision order under section 263 of the Act. 4. In response to the above notice, of the ld. PCIT, the assessee furnished copy of its earlier reply dated 11th March 2023. In its reply, the assessee submitted copy of income tax return of shareholders, bank statement, copy of ledger accounts, copy of balance sheet only for few shareholders. In support of the amount of Rs. 10,20,12,500/- (Share capital) received from 27 persons, the assessee has submitted that in some of the cases, balance sheet of the subscriber of shares, were also submitted at the time of assessment proceedings. Further, the assessee has submitted that it has fully justified the identity, genuineness and creditworthiness of the investors by way of submitting documentary evidences. The asse....
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.... 37.30 lacs from which Share Capital and Unsecured loan are provided. Similarly, in the case of Mittal Jayeshbhai Bavarva, it was seen that her own capital is Rs. 16,61,816/-, whereas Rs.69.13 lacs is claimed to have been taken, as loan from which Rs.21 lacs invested in the Share Capital of the assessee -company. It was further noted by ld PCIT that Shri Dharmeshkumar Premjibhai, Kothiya has shown returned income of Rs. 2,43,440/-, which also raises grave doubts on the creditworthiness of the person of investing Rs. 21 lacs in share capital during the year under consideration. The ld PCIT stated that these are only few instances of such glaring discrepancies and manipulation of books. The above point to glaring and obvious mismatch/discrepancies between the source of income/funds and the capacity/creditworthiness for making investment in the Share Capital. These glaring discrepancies/mismatches should have raised the antenna of the assessing officer and he should have conducted necessary enquiries/verifications. However, the assessing officer accepted the share capital investment and loans without carrying out inquiry/verification that should have been done. The assessee was also r....
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.... The ld.DR invited our attention to paper book (PB) Page No.133 and stated that the cash was deposited prior to the issue of cheque to the assessee-company. The ld.DR also invited attention towards PB Page No.164 and 165 and stated that the respective shareholders deposited the cash in bank account prior to the issue of cheque to the assessee-company. The ld.DR also invited our attention towards paper book Page No.182, page No. 213 and Page No.218 and explained that in the respective bank statement of the shareholders, the cash was deposited prior to the issue of cheques to the assessee-company, for allotment of share capital. Therefore, the ld.DR submitted that there were huge cash deposited in the bank accounts of the shareholders prior to the issue of cheques to the assessee- company, which is nothing but unaccounted money of the assessee- company, which was deposited by the assessee- company, in their bank accounts of these shareholders, as most of the shareholders do not have any transaction in their bank statement except to cash deposit and issue of cheques in favour of the assessee- company. The assessee has failed to prove source of such cash deposits. In this scenario, the....
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....parties and carefully gone through the submission put forth on behalf of the assessee along with the documents furnished and the case laws relied upon, and perused the fact of the case including the findings of the ld PCIT and other materials brought on record. We note that first proviso to section 68 of the Act, clearly provides that in respect of share capital, explanation offered by the assessee-company shall be deemed to be not satisfactory unless the shareholder offers explanation about the nature and source of such investment and the AO is satisfied about such explanation. First proviso to section 68 of the Act is reproduced as under: "Provided that where the assessee is a company (not being a company in which the public are substantially interest), and the sum so credited consists of share application money, share capital, share premium or any such amount by whatever name called, any explanation offered by such assessee-company shall be deemed to be not satisfactory, unless a) The person, being a resident in whose name such credit is recorded in the books of such company also offers an explanation about the nature and source of such sum so credited; and ....