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TMI Blog2014 (7) TMI 1066X X X X Extracts X X X X X X X X Extracts X X X X ..... rt] - the power of the CIT(A) is co-terminus with that of the AO - the FAA can do what the AO can do and direct him to do what he has failed to do - it was the duty of the CIT(A) to verify the source of investment of share application money - Since CIT(A) has failed to do the above exercise, the order of the CIT(A) is set aside and the matter remande for fresh adjudication – Decided in favour of assessee. - ITA No. 211/ctk/2013 & ITA No.156/ctk/2013 - - - Dated:- 27-6-2014 - P K Bansal And D T Garasia, JJ. For the Appellant : Shri Laxmidhar Sahoo For the Respondent : Shri K Ajay Kumar, CIT DR ORDER :- PER : Bench The cross appeals are filed against the order dated 18.12.2012 of ld CIT(A)- II, Bhubaneswar for the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the nature of service provided by ISPs do not attract the provisions of section 194J of the Income tax Act as there is no involvement of human element in the provision of service. 5. The ld CIT(A) ought to have appreciated the above decision cited by the appellant and ought not to have concluded on the basis of rapidly emerging interpretation in this behalf. Even if a different legal interpretation emerges, it is a forward looking one and cannot go to burden the appellant for the earlier years. 6) The appellant submits that a different legal emerging interpretation cannot be applied over a past event that has occurred about four years ago and that too to collect taxes. The Finance Act 2012 has brought out the amendment in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e tax Act, 1961 is warranted and if the order is sustained, it would distort the income tax filing of the appellant. This amount should be carried forward as loss and the time limit for filing the revised return for the subsequent years would have expired. The appellant stands to lose this benefit of carried forward loss. 12) The appellant prays that since the Act has been amended in July, 2012 with retrospective effect, the question of penalty or the interest liability on the tax demanded does not arise for there is no fault or mistake on the part of the appellant. 3. The revenue has taken the following grounds in its appeal: 1. On the facts and in the circumstances of the case, ld CIT(A) is not justified in deleting the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... other hand, ld Departmental Representative did not object to the condonation application. 5. We have heard ld representatives of parties and perused the condonation application filed by the assessee. Looking to the facts and circumstances of the case, we observe that the Director (Taxation) for Fox Mandal Associates, Solicitors Advocates, who was authorized to represent the taxation matter of the assessee had gone out of country and also due to health problem, on his return could not file the appeal on time before the Tribunal, hence, there was delay of 21 days. We observe that the assessee had reasonable cause not to file the appeal within time. Therefore, we allow the condonation application and admit the appeal for disposal. 6. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n of ₹ 5,85,45,120/- on account of share application money considering the remand report without discussing how the AO has verified the creditworthiness of Dr. P.K.Mohanty, Trustee of TRFI. During the course of hearing also, ld A.R. was asked to produce the copy of the remand report and we have gone through the remand report and found that he has obtained simply the documentary evidence from Dr. P.K.Mohanty, Trustee of TRFI. Ld CIT(A) has not considered the three ingredients of section 68 of the Act, i.e. creditworthiness, identity and genuineness of the transaction. Ld CIT(A) has also not discussed how he has satisfied regarding the genuineness and source of the share application money in investing in the assessee company. In view of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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