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TMI Blog2018 (10) TMI 57X X X X Extracts X X X X X X X X Extracts X X X X ..... f Income Tax, Central-2, New Delhi (hereinafter referred to as Pr. CIT), is bad in law and without Jurisdiction. 2. That on the facts and circumstances of the case and in law, the Pr. CIT , New Delhi has erred in passing the order u/s 263 as the assessment order passed u/s 153C/143(3) is not erroneous. 2.1 That the Pr. CIT has erred in not considering the fact that the provisions of section 2(22)(e) are not applicable in the case of the appellant company as the amount of Rs. 2,50,00,000/- received by the appellant company from M/s AMQ Agro India Pvt Ltd during the relevant assessment year is towards share application money and not as Loans & advances and the same has been duly reflected in the Audited Balance sheet as at 31.03.2013 of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r, Sub:Show cause u/s 263 of the IncomeTax Act,1961 in the case of M/s Forum Agro Foods Pvt. Ltd. (PAN : AAACF8920D) in respect of the assessment order u/s 153C/143(3) of the Income Tax Act, 1961, dated 31.03.2016 for A.Y. 2013-14-Reg. Kindly refer to the subject mentioned above. 2. The assessment records of your case for the A.Y. 2013-14 were called for and examined by the undersigned. From perusal of the assessment records, it is seen that the assessment order passed by the Assessing Officer (A.O) , Central Circle-19, New Delhi u/s 153C/143(3) of the Income Tax Act, 1961 on 31.3.2016 is appears to be erroneous and prejudicial to the interest of revenue as per observations given hereunder: (a) It is seen from the records that asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or through a representative duly authorized in writing in this behalf, or produce or cause there to be produced at the said time any document, account and any other evidence on which you may rely in support of your contentions. 6. You are also intimated that if nothing is received from your end, then it will be presumed that you have nothing to submit on the issues contained above and your case will be decided on the basis of material available on the record and as per the provisions of the Income Tax Act, 1961. Sd/-(RKS Pandya) Pr.CIT, Central-2, New Delhi 2.3. Assessee in response to show cause notice, filed its reply dated 19/03/18, it was stated that, during assessment proceedings, assessee in its reply dated 26/03/18 submitted t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case, while making assessment for A.Y. 2013-14, the A.O. has not considered the issue of applicability of the provision of the section 2(22)(e) of the IT Act, 1961 on transaction with M/s AMQ Agro (I) Pvt. Ltd. Moreover, I, thus, hold that the assessment order passed in the case of the assessee by the Assessing Officer, Central Circle-19, New Delhi on 31.03.2016 u/s. 153C/143(3) is erroneous because nature of transaction of receipt the alleged "share application money" with M/s AMQ Agro (I) Pvt. Ltd. was not verified and are thus the order passed by the AO is prejudicial to the interest of revenue. Thus, the said order is set aside and the assessment proceedings are restored back to the file of the Assessing Officer on the aforesaid limite ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation period for issue of notice under section 143 (2) had not lapsed for year under consideration, and therefore it was open for Assessing Officer to assess entire income of assessee. 4.1. She submitted that there has been no enquiry initiated by Ld.AO regarding share application money to the extent of Rs. 2,50,00,000/-, which stood outstanding as on 31/03/13, and therefore Ld.CIT was correct in assuming jurisdiction under section 263 by holding assessment order to be erroneous and prejudicial to the interest of the revenue. Ld. CIT DR submitted that Assessing Officer failed to investigate upon money that has been received between 12/12/12 and 27/02/13 from M/s.AMQ Agro India Pvt. Ltd., where assessee had 33% shareholding. She submitted t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s AMQ Agro India Pvt. Ltd. during A.Y. 2014-15, which is reflected in audited balance sheet of assessee as on 31st March, 2014. 7. Thus it is clear that amount received by assessee from M/s AMQ Agro India Pvt. Ltd. does not amount to loans and advances and Provisions of Sec.2(22)(e) of the Act cannot be applied. In our considered opinion, the order passed by Ld.AO cannot be treated as erroneous. It is a settled law that S.263 proceedings can be upheld, if twin conditions of assessment order being erroneous, as well as prejudicial to the interest of Revenue, stands satisfied. In the present facts of the case assessee received share application money during the year under consideration and shares have been allotted during A.Y. 2014-15 to M/s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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