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TMI Blog2014 (1) TMI 289X X X X Extracts X X X X X X X X Extracts X X X X ..... that the scope of interference under section 263 is not to set aside merely unfavourable orders and bring to tax some more money to the treasury, nor is the section meant to get at sheer escapement of revenue which is taken care of by the other provisions of the Act - There was neither incorrect assumption of facts nor there was incorrect application of law by the A.O. while passing the assessment order - Under such circumstances the invocation of jurisdiction under section 263 of the Act by the CIT was not justified - Decided in favour of assessee. - ITA No.3854/M/13, ITA No.3853/M/13 - - - Dated:- 18-12-2013 - Shri D. Karunakara Rao And Shri Sanjay Garg,JJ. For the Petitioner : Shri Rakesh Joshi, A.R. For the Respondent : Shr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d not make necessary enquiries on the issue under consideration. The CIT further observed that during the course of search, the investigation wing had made certain enquiries from investor companies and directors of some of the companies were also examined. It was found that some of those companies were merely paper entities. However, AO had not considered the report of investigation wing and did not make any enquiry with regard to the genuineness of the share capital transactions from the above companies, their credit worthiness and also whether the said companies were really existing and conducting any business. It was submitted by the assessee that before passing the assessment order the AO had made enquiries in respect of the share holde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t. Ltd. (ITA No.3966 to 3969/M/13). A perusal of the said order reveals that on almost identical facts, the jurisdiction under section 263 was invoked by the CIT in the above noted sister concern of the assessee. However, in appeal the Tribunal held that from the facts of the case it revealed that the AO had made detailed enquiry in respect of share application money and also in respect of trading activities of the assessee. The assessee had filed necessary details with supporting evidences to discharge its onus. After considering the reply of the assessee and after verifications and enquiries made by the AO, the AO finally came to the conclusion that no addition was required in respect of share application money. The Tribunal further obser ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n of facts nor there was incorrect application of law by the A.O. while passing the assessment order, hence the said order could not be said to be erroneous. Under such circumstances the invocation of jurisdiction under section 263 of the Act by the CIT was not justified and hence the same was set aside. 6. The facts of the case in hand are also identical of that of the case of group concern of the assessee namely M/s. Turakhia Ferromet Pvt. Ltd. (supra). In the case in hand also a perusal of the impugned order as well as assessment order and the various documents relied upon by the AR reveals beyond doubt that the assessment order was passed by the AO after due application of mind and after making necessary enquiries and after being sati ..... X X X X Extracts X X X X X X X X Extracts X X X X
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