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TMI Blog2024 (6) TMI 412X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee was selected for limited scrutiny on three issues : i) Refund Claim (ii) Share Capital/other capital (iii) Deduction or total income under Chapter VI-A. 3. The ld. Assessing Officer (in short 'the AO') in the scrutiny assessment proceedings u/s 143(3) of the Income Tax Act, after examining the aforesaid issues accepted the returned income of the assessee. Thereafter, the ld. PCIT noted from the assessment records that the assessee had claimed deduction u/s 80JJAA of the Income Tax Act, 1961 (in short 'the Act') for the assessment year 2018-19 to the tune of Rs. 99,23,285/-. He further observed that from the perusal of record in Form 10DA, it revealed that 775 employees had been added by the assessee in the relevant Financia ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ompulsory Redeemable Preference Shares (NCRPS) of Rs. 100/- each. He, in this respect, observed that the AO had not properly examined the issue relating to the identity/financial worthiness and share subscribers and genuineness of the transactions. 4. The ld. PCIT show caused the assessee on the above issues as to why the assessment order be not held as erroneous and prejudicial to the interests of the Revenue for lack of adequate enquiries made by the AO. 5. In reply to the show cause, the assessee furnished the various details and submissions. However, the ld. PCIT did not get satisfied with the aforesaid submissions of the assessee and held that the assessment order passed by the AO u/s 143(3) was erroneous and prejudicial to the inter ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and 14A of the Act were not covered under the limited scrutiny, therefore, the assessment order cannot be held to be erroneous for want of detailed enquiries on these issues by the AO. 9. Now coming to the issue relating to the claim of deduction u/s 80JJAA of the Act, the ld. Counsel for the assessee has invited our attention to the various details and explanations given by the assessee during the assessment proceedings. He has further invited our attention to the reply filed before the ld. PCIT wherein, the reference was made to the various enquiries made by the AO on this issue and the reply and explanation given by the assessee in this respect. The sum and substance of the reply of the assessee has been that the assessee was also provi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t heads against which deduction claimed. 3. Note on eligibility criteria of deductions claimed under different sections of Chapter VIA 4. Details of all the bank accounts alongwith the bank statement for the year to support the claim. 5. Documentary evidence in respect of investment/expenditure/ payment etc. made to claim the deductions." 10. The ld. counsel has further invited our attention to page 120, whereby, the details in respect of additional employees was submitted which included the names of the additional employees, their PAN number, gross salary, bank account details and the mode of salary paid through banking channel and even the relevant deductions and deposits under employees' Provident Fund and under Employees' State I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... address of the shareholders b) PAN of the shareholders c) Face Value of each share. d) Number of shares allotted to each shareholder. e) Total value of the shares allotted to each shareholder, f) Payment received from each shareholder during the financial year. 2) Provide documentary evidence to substantiate the identity and ITR of the shareholders to substantiate creditworthiness the shareholders as well as the proof of genuineness of transaction in respect of fresh credit of the share capital account. 3) The valuation report with respect to the working of EPS. 4) The comparison of the working of EPS with the immediately prior instance, wherein the shares were allotted. 5. The year wise details of dividend declared durin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e companies namely M/s Takecare India Pvt. Ltd. and Videocon Realty Infrastructure Ltd. are held to be a matter that needs to be factually verified and examined accordingly by the AO. We note that these are the general observations of the ld. PCIT. The ld. PCIT has not given any specific finding as to why the order of the AO was erroneous and prejudicial to the interests of the Revenue on this issue and on what account. The ld. PCIT has not pointed out any defect, infirmity or inadequacy in the explanation offered by the assessee on the queries made by the ld. PCIT. Simply holding that the AO was required to make more enquiries is not a valid ground to hold assessment order as erroneous and prejudicial to the interests of the Revenue. The e ..... X X X X Extracts X X X X X X X X Extracts X X X X
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