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TMI Blog2022 (9) TMI 186X X X X Extracts X X X X X X X X Extracts X X X X ..... . CIT and whether such directions have been complied by the ld. AO. Where the assessee has opted not to appear before the ld. Pr. CIT nor before this Tribunal and has merely filed the appeal but has not pursued the appeal so filed by it and in the given situation where we are unable to lay our hands on any of the details of the financial transactions carried out by the assessee during the year and whether such transactions have been examined by ld. AO in the manner directed by ld. Pr. CIT passed u/s 263 we fail to find any infirmity in the finding of the ld. Pr. CIT in the impugned order - We, accordingly confirm the said finding setting aside the assessment order passed u/s 143(3) which is, thus, rightly held to be erroneous and prejudicial to the interests of the Revenue. Accordingly, all the grounds raised by the assessee in the instant appeal are dismissed. - I.T.A. No. 1372/Kol/2019 - - - Dated:- 31-8-2022 - SRI MANISH BORAD , ACCOUNTANT MEMBER And SRI SONJOY SARMA , JUDICIAL MEMBER None appeared on behalf of the Assessee Sh. Amol Kamat, CIT, D/R, appeared on behalf of the Revenue ORDER Per Manish Borad , Accountant Member : This appeal filed by th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aising fresh issues which is not contemplated under sec. 263 as well as under the provisions of the I.T. Act, 1961. 8. For that on the facts and circumstances the order the Ld. PCIT may be set aside. 9. For that the appellant craves leave to add, alter or withdraw any ground/s of appeal on or before hearing of the appeal. 3. When case was called, none appeared on behalf of the assessee. On perusal of records, we find that multiple opportunities have been given to the assessee and notices have also been issued by RPAD. But, there is no compliance on behalf of the assessee. We have no option left except to proceed to adjudicate the issues in the instant appeal with the assistance of ld. D/R and available records. 4. Brief facts of the case as culled out from the records are that the assessee is a private limited company. Return for AY 2012-13 was filed on 27.09.2013 declaring income of Rs. 12,100/-. Case selected for scrutiny and assessment order u/s 143(3) of the Act was passed on 29.03.2016. Ld. Pr. CIT-4, Kolkata invoked the revisionary powers u/s 263 of the Act vide order dated 26.09.2016 setting aside the assessment order passed u/s 143(3) of the Act dated 29.0 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... find out the money trail of the share capital. (vi) The A.O' failed to adequately trace out the money trail to ascertain the genuineness of source of fund invested by share holders in the assessee company. (vii) On the whole the impugned order dated 17-10-2016 passed u/s 143(3)/263 of the Income Tax Act, 1961 prima facie suffers from lack of independent and adequate enquiry on the aforesaid issues. 6. The assessee failed to make any compliance to the show cause notice dated 19.02.2018 issued u/s 263 of the Act and even after being provided sufficient opportunities on multiple occasions, the assessee failed to reply or furnish any submission. Therefore, it was presumed by the ld. Pr. CIT that the assessee has no explanation to offer. Accordingly, ld. Pr. CIT again set aside the assessment order dated 17.10.2016 giving specific directions to ld. AO to carry out the assessment proceedings and call for relevant materials/evidences in order to examine the facts of the case, genuineness of the source of funds invested by share holders in the assessee company, rationale behind raising the said share premium, and other details observing the following in para 4, 4.1 4.3 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ous in so far as prejudicial to the interest of revenue. 4.1 Thus from the above facts, I am of the opinion that the impugned Assessment order passed u/s-143(3) /263 of the Act is erroneous so far as prejudicial to the interests of revenue. The interests of the revenue are not to be equated to superficially examine the inflow and outgo of money but to go much deeper to unearth the true colour and contour of transaction. Further, it is clear enough to say that the order passed by the A.O. shall be prejudicial to the interest of revenue (Revenue Administration). Therefore the impugned Assessment order stands erroneous so far as prejudicial to the interest of revenue. The Assessing Officer is required to carry out proper examination of the books of accounts including bank accounts of assessee as well as investors and make a fresh assessment. A.O. is also required to examine the genuineness of source of fund appearing in the nomenclature of share capital including premium and nature of transactions, identity of investor and its genuineness. 4.3 The facts have been examined. In my considered opinion, this is a case of lack of enquiry on the part of the AO. The decision on this ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ut in the show cause needs verification as merely accepting submission without calling for logically relevant material/evidences in order to have an overview of totality of fact and circumstances, during the course of assessment proceedings the A.O. failed to examine the above referred issue rendering the assessment order erroneous on the ground of lack of enquiry. After having considered the position of law and facts and circumstances of the instant case, I am of the considered opinion that the assessment order passed by the A.O. is erroneous in so far as it is prejudicial to the interest of revenue in accordance with the Explanation 2(c) below section 263 (1) of the Act on the ground of lack of enquiry. Accordingly, the assessment order dated 17-10-2016 passed u/s 143(3)/263 is set aside de-novo to the table of AO, on specific issue as outlined in above para 2 with a direction to Assessing Officer to cause adequate and effective enquiry. The A.O. is directed to provide reasonable opportunity to the assessee company to produce documents evidences which it may choose to rely upon for substantiating its own claim. The AO is further directed to adjudicate the said issue de-novo and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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