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TMI Blog2023 (7) TMI 670X X X X Extracts X X X X X X X X Extracts X X X X ..... inent to point out that there was no bar on limitation by the ld. PCIT to invoke section 263 for the second time considering the order to be erroneous insofar as it is prejudicial to the interest of the Revenue for the reason that the A.O. has not gone into the issue of the impugned investment which was part of the first section 263 proceeding. It is apparent that the A.O. has not enquired into the issue of investment made by the assessee and it does not fall in the case where the assessee has enquired into the issue and taken one of the plausible view. As the order of the ld. PCIT invoking section 263 is valid since the assessment order sought to be revised was erroneous insofar as it is prejudicial to the interest of the Revenue. Decid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lly that all the earlier orders passed by the A.O. u/s. 143(3) and 143(3) r.w.s. 263 of the Act stands cancelled while passing the second order passed u/s. 143(3) r.w.s. 263 of the Act. 5. The brief facts are that the assessee is a partnership firm engaged in the business of export of suiting and shirting to various states of USA, Europe, Gulf, Vietnam, Srilanka and other countries. The assessee filed its return of income dated 25.09.2014, declaring total income at Rs.1,28,29,630/- as income from business or profession. The assessee s case was selected for scrutiny and the assessment order dated 26.06.2016 was passed u/s. 143(3) of the Act where the A.O. had accepted the returned income filed by the assessee. The ld. PCIT passed the revi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3(3) of the Act r.w.s. 263 of the Act dated 31.12.2019 rendering it as erroneous and prejudicial to the interest of the revenue. The ld. PCIT issued the notice on a query of source of investment of Rs. 1,20,00,000/- in securities for which the assessee vide its reply dated 23.12.2109 submitted that the assessee firm had not made any investment in the current year and that the investment made in M/s. Armani Industries Pvt. Ltd. was made in F.Y. 2011-12 for the purpose of promoting its own processing unit in the name and style of M/s. Armani Industries Pvt. Ltd. at Bilvara and the capital investment of Rs. 1,20,00,000/- was made by the assessee firm from its own funds. The ld. PCIT observed that the impugned investment was not reflected in th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... specified that there was no sufficient time available for conducting the third party verification and, hence, the details filed by the assessee was not verifiable. The ld. AR contended that this finding of the A.O. was a false allegation, as the A.O. had sufficient time to conclude the assessment but had rather choose not to verify the details filed by the assessee. The ld. AR further stated that the impugned investment was made during the financial year 2011-12 and not during the impugned assessment year. The ld. AR further contended that all the details were furnished by the assessee to substantiate the investment made in M/s. Armani Industries (I) Pvt. Ltd. The ld. AR stated that the assessment order dated 31.12.2019 passed u/s. 143(3) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s made in F.Y. 2011-12 by way of furnishing the bank statement or any other supporting documents to explain the source of the investment made by the assessee in M/s. Armani Industries (I) Pvt. Ltd. It is also pertinent to point out that there was no bar on limitation by the ld. PCIT to invoke section 263 for the second time considering the order dated 31.12.2019 to be erroneous insofar as it is prejudicial to the interest of the Revenue for the reason that the A.O. has not gone into the issue of the impugned investment which was part of the first section 263 proceeding. It is apparent that the A.O. has not enquired into the issue of investment made by the assessee and it does not fall in the case where the assessee has enquired into the iss ..... X X X X Extracts X X X X X X X X Extracts X X X X
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