9911796707
TMI Blog2024 (11) TMI 689X X X X Extracts X X X X X X X X Extracts X X X X ..... resh. Appeal of the assessee was dismissed by ITAT, Delhi. Hon ble High Court of Punjab and Haryana set aside order and remanded the matter back to PCIT to pass a well reasoned order. Learned PCIT issued notice under Section 263 of the Act. Assessee filed reply on 09.01.2024. PCIT after perusing balance sheet as on 31.03.2013 observed that the assessee received Rs. 2,64,10,000/- as share application money pending for share allotment during Financial Year 2012-13, however, no allotment of share was made during the Financial Year 2012-13. As per balance sheet as on 31.03.2014, the 2,11,280 share @ 125/- per share were issued to various parties against the face value of Rs. 10/- each and added/diverted Rs. 2,42,97,200/- as Securities Premium R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er For the Assessee : Shri R R Singhla, CA For the Respondent : Shri Mukesh Kumar Jha, CIT (DR) ORDER PER VIMAL KUMAR,JM: The appeal filed by assessee is against order dated 28.03.2024 of the Learned Principal Commissioner of Income Tax, Rohtak, [hereinafter referred to as ( PCIT ] under Section 263 of the Income Tax Act, 1961 (hereinafter referred as the Act ) arising out of Assessment Order dated 02.08.2016 of the Income Tax Officer, Ward-3(5), Gurgaon (hereinafter referred as Ld.AO) for Assessment Year 2014-15. 2. Brief facts of the case are that on 01.11.2014 assessee e-filed return of income declaring income of Rs. 2,51,990/-. The case was selected for Limited Scrutiny through CASS. Notice under Section 143(2) of the Act dated 18.09.20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the appellant in the year 2013-14 can be taken as escaped income to initiate reassessment proceedings for the assessment year 2014-15 . 6. The Learned authorized representative for appellant/assessee submitted that Ld. PCIT erred in setting aside the assessment order of Ld. AO and directing the assessment de novo illegally. Learned PCIT gave no reasons for error in the order of Ld. AO. The Ld. PCIT has not taken any exercise of enquiry verification but has only directed AO to undertake enquiry. Ld. PCIT without establishing any error in the order of Ld. AO which is fundamental and preliminary condition for invoking the jurisdiction u/s 263 is bad in law. Ld. PCIT erred in not appreciating that there cannot be parallel proceeding u/s 263 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er to the AO to decide whether findings recorded are erroneous. In case there are inadequate inquiry but not lack of inquiry, again the CIT must give and record the finding let the order/inquiry made is erroneous. 7. The Learned authorized representative for revenue relied on order of Learned PCIT. 8. From the examination of record in the light of aforesaid rival contention it is crystal clear that appellant/assessee company has filed its return of income for the year 2014-15 on 01.11.2014 declaring an income of Rs. 2,51,990/-. Assessment order dated 02.08.2016 mentions that the case was selected for limited scrutiny through CASS. As per notice assessee furnished required information and reply on the basis of which the return income was acc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... some or more inquiries needed to be conducted. 11. From perusal of above material facts in light of aforesaid well settled principle of law, it is apparent on record that the issue regarding allotment of shares was examined by Ld. A.O. and decided in favour of assessee in original assessment proceedings. Learned PCIT failed to clarify as to how share premium received by assessee in year 2013-14 can be taken as escaped income to initiate re-assessment proceedings for Assessment Year 2014-15. Learned PCIT had no where found any flaw in the documents. Learned PCIT had not undertaken any enquiry or given reasons for coming to conclusion that assessment order was erroneous and prejudicial to interest of revenue. Explanation 2 to section 263 of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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