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TMI Blog2023 (2) TMI 155X X X X Extracts X X X X X X X X Extracts X X X X ..... . In conclusion, objection towards lack of jurisdiction conferred under Section 147 of the Act is adjudicated against the assessee while the objection towards adjudication of merit is referred back to the Assessing Officer for de novo determination. The order of the CIT(A) is thus set aside on merits for fresh determination by the Assessing Officer. The Assessing Officer shall determine the issue on merits afresh in accordance with law keeping in mind the sacrosanct principles of natural justice. The statement of third party if relied upon by the Department, shall be necessarily confronted to the assessee for its comments and cross-examination, if demanded. The observations made in M/s. Priya Diamonds shall be adhered too. In concl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ld. CIT(A) has failed to appreciate that assessment order passed by the Ld. AO is against the principles of natural justice and has been passed without reasonable opportunity of being heard. 4. That on the facts and circumstances of the case and the provisions of the law, the Ld. CIT Appeal has erred in Sustaining an addition of Rs. 90,00,000/- on account of increase in Share Capital and Premium as Unexplained Credit u/s. 68. 5. That the appellant craves leave to reserve to itself the right to add, alter amend, vary, modify and/or withdraw and ground(s) of appeal at or before the time of hearing. 3. Briefly stated, a survey operation under Section 133A of the Act was carried out at the business premises of M/s. KRC Gems Pvt. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d thus dismissed the appeal of the assessee. 5. Further aggrieved, the assessee preferred appeal before the Tribunal. The Ld. counsel for the assessee strongly relied upon the decision rendered by the Co-ordinate Bench in M/s. Priya Diamonds Pvt. Ltd. vs. ACIT, ITA No. 7303/Del/2017 order dated 27.01.2022 and submitted that the said assessee, i.e., M/s. Priya Diamonds is a sister concern of the assessee-company and the survey under Section 133A were carried out on both the concerns by the Investigation Wing simultaneously. The Ld. counsel submitted that in the identical facts while the legal issue of jurisdiction was decided against the assessee but however the action of the Revenue Authorities were set aside to the Assessing Officer for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nce with law should be quashed. It is also his submission that approving authority has not given approval in accordance with the provisions of law since there is no proper satisfaction recorded by the Addl. CIT before granting approval. We do not find any force in the above arguments of the Learned Counsel for the Assessee. Admittedly, the survey operation under section 133A of the I.T. Act, 1961' was carried-out at the business premises of the assessee itself during which it was found that an amount of Rs. 1 crore was introduced in the garb of share application/share premium in the assessee company in the F.Y. 2011-12. It was also found that most of the share applicant companies/concerns are Kolkata based companies and the assessee dur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er of the Ld. CIT(A) in upholding the validity of re-assessment proceedings. Accordingly, grounds raised by the assessee challenging the validity of re-assessment proceedings are dismissed. 6.1. So far as the merits of the case is concerned, we find from the order of the A.O. as well as Ld. CIT(A) that there is not a whisper regarding any opportunity to the assessee to substantiate the introduction of Rs. 1 crore towards share capital as well as share premium. The so-called statement of Shri Pramod Kumar Sharma, the entry operator who admitted to have provided entries to the assessee company has not been provided to the assessee nor the assessee was given an opportunity to cross-examine the entry provider Shri Pramod Kumar Sharma. Prin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... objection towards lack of jurisdiction conferred under Section 147 of the Act is adjudicated against the assessee while the objection towards adjudication of merit is referred back to the Assessing Officer for de novo determination. 11. The order of the CIT(A) is thus set aside on merits for fresh determination by the Assessing Officer. The Assessing Officer shall determine the issue on merits afresh in accordance with law keeping in mind the sacrosanct principles of natural justice. The statement of third party if relied upon by the Department, shall be necessarily confronted to the assessee for its comments and cross-examination, if demanded. The observations made in M/s. Priya Diamonds shall be adhered too. 12. In conclusion, the m ..... X X X X Extracts X X X X X X X X Extracts X X X X
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