TaxTMI 
TaxTMI 
2026 (7) TMI 1497
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....by the Tribunal. 2. The Assessment Year (AY) in question is 2008-09. The second proceeding is a writ petition challenging the order passed by the Tribunal under Section 254(2) of the IT Act, whereby Miscellaneous Application Nos. 205 and 206 arising out of Income Tax Appeal No. 6125/Mum/2019 came to be rejected. 3. By the Miscellaneous Applications, the Appellant-Assessee had raised several contentions, both on facts and in law, contending that such issues required consideration by the Tribunal while adjudicating the Revenue's Appeal against the order dated 30th July 2019 passed by the CIT(Appeals). The grievance of the Appellant-Assessee is that although such contentions were specifically urged, the Tribunal, while allowing the Revenue's Appeal by the impugned order, failed to consider the same, which necessitated the filing of the aforesaid Miscellaneous Applications seeking rectification. As the Tribunal rejected the said Miscellaneous applications, the Appellant-Assessee has instituted the present Writ Petition. 4. We do not propose to delve into the rival contentions on merits in much detail suffice it to observe that, insofar as the Appellant-Assessee is conc....
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....nt facts and circumstances of the case and In view of the discussion made above. Accordingly, the addition as per ground no. 3 (b) In relation to M/s. Rowland Trexim Pvt. &, ground no. 3(c) in relation to M/s. Bhawna Computers Pvt. Ltd., and ground no. 3(d) only in relation to M/s. Bluejay Alrlines Pvt. Ltd. are deleted; whereas the addition in respect of other 4 parties contested in ground no. 3(d) aggregating to Rs. 1,00,00,000/- made by AO on account of share application money received from Kolkata parties is to be sustained and upheld. Hence, the remaining addition of Rs. 11,00,00,000/- (Rs. 12,00,00,000 Rs. 1,00,00,000) needs to be deleted. This ground of appeal is accordingly PARTLY ALLOWED. 9.0 The Fifth ground of appeal has already been discussed while deciding the above grounds. Therefore, this is treated as infructuous and is DISMISSED. 10.0 The Sixth Ground of appeal is as under: "The appellant craves leave to add, amend, alter or delete any or all the grounds of appeal" 10.1 No such option has been exercised by the appellant during the appeal. proceedings. Therefore, it is clear that this ground of appeal is academic in nature and no ....
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.... Gandhi has, in particular, takes exception to the following observations made by the Tribunal in paragraph 9 of the impugned order: "The assessee has not produced any evidence to show the actual business carried out by the alleged companies either before us or before the lower authorities and also no evidence in support of accumulated income has been filed by the assessee. Resultantly, the investment made by these companies in the assessee company lacks trust as to its genuineness and creditworthiness doubtful." 11. The aforesaid observations, according to Mr. Gandhi, are wholly unsustainable inasmuch being contrary to the materials available on record and the findings returned by the CIT-(Appeals) upon due consideration of such evidence. It is his submission that the Tribunal has overlooked such materials including the reassessment orders passed in respect of the three investor companies, which clearly supported the case of the Appellant-Assessee and formed the basis on which the CIT-(Appeals) had deleted the additions made under Section 68 of the IT Act. 12. It is further submitted by Mr. Gandhi that the cross-objections preferred by the Appellant-Assessee specifi....
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.... mind, there was no live link or nexus between the reasons and the belief and that the approval of the sanctioning authority demonstrated non-application of mind? (f) Whether on the facts and in the circumstances of the case and in law, the Tribunal was justified in not dealing with the arguments of the Appellant and not dealing with the judgments relied upon by the Appellant, and therefore, the impugned order is perverse and vitiated?" 14. Insofar as the writ petition is concerned, as noted by us hereinabove, the Appellant-Assessee had approached the Tribunal by filing Miscellaneous Application Nos. 205 and 206 under Section 254(2) of the IT Act, seeking recall/rectification of the impugned order dated 21 September 2022, which is the subject matter of the accompanying appeal before us. By the said Miscellaneous Applications, the Appellant-Assessee raised several contentions, both on facts and in law, contending that material submissions urged during the hearing of the Revenue's Appeal had not been considered by the Tribunal while adjudicating the Appeal. According to the Appellant-Assessee, this constituted a mistake apparent from the record warranting exercise of ....
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....d the impugned orders and the material placed on record, we find substance in the contention urged on behalf of the Appellant-Assessee that the observations made by the Tribunal, particularly in paragraph 9 of the impugned order, do not appear to reflect a holistic appreciation of the material evidence available on record. Prima facie, the documentary material which formed the basis of the additions made by the AO was independently examined by the CIT-(Appeals), who, upon a detailed consideration thereof, recorded findings that the transactions in question could not be regarded as non-genuine merely because of material gathered in the course of search proceedings conducted in the case of third parties. 20. The Appellant-Assessee has consistently contended that the documents relied upon by the Revenue do not, in any manner, establish that the transactions relating to the receipt of share application money were sham or non-genuine. On the contrary, the reassessment orders passed in the cases of the three investor companies, which were also placed on record before the appellate authorities, prima facie support the case of the Appellant-Assessee that the investments made by those co....
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....ing the validity of reassessment proceedings, held that the genuineness of the transaction and the material placed on record are required to be objectively examined and that the reopening cannot be sustained on reasons which are factually incorrect or founded on an erroneous appreciation of the record. The submission on behalf of the assessee is quite opposite that, not applying the ratio of the said decision to the facts of the present case, would amount to a legal error. Mr. Gandhi has pointed out that, in Jalaram Enterprises (P.) Ltd. (supra), this Court interfered with the reassessment proceedings inter-alia making, the following observations:- "6. Facts being identical, we adopt the same course in the present petition also. This leaves us the additional ground made by the Assessing Officer in the reasons which is of the assessee having given unsecured loan of Rs. 51 lakhs to one Shri Gaurav Garg during this year. In this context, the Assessing Officer has only referred to such transaction and thereafter recorded that- "The genuineness of said transaction needs to be examined." In clear terms, the Assessing Officer has not indicated any prima facie ground why ....
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....riate perspective and in the light of the settled legal position emerging from the decisions relied upon by the Appellant-Assessee. Such consideration was necessary, as the application of the principles laid down in the aforesaid decisions could have a material bearing on the conclusions reached by the Tribunal. 27. To what extent the said principles would ultimately affect the merits of the controversy is a matter on which we do not propose to express any opinion. Any such exercise would necessarily require a comprehensive examination of the factual and documentary material on record. It is for the Tribunal to consider all the relevant material and the applicable legal principles before arriving at an appropriate conclusion in accordance with law. 28. For the reasons recorded hereinabove, we are also inclined to set aside the order dated 6th October 2023 passed by the Tribunal rejecting Miscellaneous Application Nos. 205 and 206, which is the subject matter of challenge in the accompanying writ petition. 29. Thus, the Revenue's Appeal is required to be restored to the file of the Tribunal for a fresh adjudication. Accordingly, we are inclined to allow the appeal prefe....