9911796707
TMI Blog2023 (10) TMI 846X X X X Extracts X X X X X X X X Extracts X X X X ..... year and low income in compression to high amounts of loan, advances and investment in shares and noted that in response to notices AR of assessee attending proceedings and after taking on record necessary details, explanation and evidences returned income at Nil was accepted. We are unable to see any endeavour exercise by the AO regarding verification, examination and adjudication of both the issues were picked up for scrutiny assessment proceedings even from the statement of facts we are unable to see details of any notice either u/s. 142(1) or any other provisions of the Act except notices dated 19.09.2017 u/s. 133(6) of the Act to sister concerns (2) of assessee. Even despite service of notice the assessee is not representing and pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oner of Income-tax-1, Delhi, New Delhi, erred in not appreciating the fact that the Appellant Company had hardly started the business and the loans and advances were from group companies through their bank accounts and duly accepted as genuine. 3. Appropriate direction may be issued not to proceed for the assessment on the directions in the order u/s 263 of the Act. 4. From the grounds and statement of facts we note that the assessee while challenging the revisionary order passed u/s. 263 of the I.T Act 1961 (for short the Act ) of PCIT, New Delhi submitted that the ld. PCIT has erred in not appreciating the fact that during AY 2015-16 the assessee company had hardly started the business and the loans and advances from the group c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... required enquiries and verification, which should have been made, while accepting unsecured loans and advances shown by the assessee in its financial accounts and balance sheet. The ld. PCIT also submitted that the assessment order clearly reveals that the Assessing Officer has accepted assessee s explanation without making any inquiry of verification of fact therefore it was rightly alleged that the assessee order is erroneous and prejudicial to the interest of Revenue. The ld. CIT(DR) submitted that accordingly, as per mandate of explanation 2 to section 263 of the Act the ld. PCIT rightly held that the assessment order passed without proper verification and enquiries is not only erroneous but prejudicial to the interest of Revenue hence ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... M/s Supertech Realtors Pvt. Ltd., claimed to be their sister concerns and assessed to tax separately. In the course of the assessment proceedings of the case, the AO of the case been found to have issued notices u/s 133(6) of the Income-tax Act, 1961 and the so-called had been found to have filed their replies in response to notice u/s 133(6) of the Income-tax Act, 1961. 7. On further examination of the same, the ld. PCIT also noted following factual position emerged from the financial statements and balance sheet of assessee:- (i) M/s Supertech Realtors Pot. Ltd. has filed its return of income declaring loss of Rs. 4,73,30,485/-, therefore, its creditworthiness remained doubtful. (ii) From the Balance sheet of M/s Supertech Rea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0/-. 8. The ld. PCIT also noted that In the course of the assessment proceedings of the case, the AO chose to make perfunctory enquiries on the issues of the case for which it has been selected for the Limited Scrutiny and no enquiries whatsoever had been found to have been made in respect of the identity, creditworthiness and genuineness of the loans and advances as required u/s 68 of the Act. The AO should have made further investigations so as to establish that the identity of the party, its creditworthiness and genuineness of the Loan transactions should have been established. However, the AO without making such further investigations passed the assessment order u/s 143(3) of the Income-tax Act, 1961 on 30.11.2017 therein assessing ..... X X X X Extracts X X X X X X X X Extracts X X X X
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