Case Law Details
Brief of the Case
ITAT Mumbai held In the case of M/s. Rachana Finance & Investments Pvt. Ltd. & M/s. Repute Properties Pvt. Ltd. vs. CIT that in the present case, the order of AO may be brief but that by itself is not a sufficient reason to hold the order of assessment as erroneous and prejudicial to the interest of the revenue. The scope of interference u/s 263 is not to set aside merely unfavorable orders and bring to tax some more money to the treasury nor is the section meant to get at sheer escapement of revenue which is taken care of by other provisions in the Act. Power under Section 263 cannot be exercised for starting fishing and roving enquiries. In the current case, since the AO has examined the issue by making necessary enquiries, the assessment order cannot be held erroneous and also the view taken by the AO is one of the possible views, the assessment order cannot be held to be prejudicial to the interest of revenue. Hence, revision order is not sustainable.
Facts of the Case
The assessee filed return of income for AY 2004-05 on 15.11.2004 declaring total income at Rs.6,658/-. Thereafter the case was reopened on 31.03.2011. After considering the case of both the parties, the AO passed assessment order u/s 143(3) r.w.s. 147 on 28.10.2011. Whereby the total income of assessee company was assessed at Rs.6,658/-. CIT noted that the assessee has invested an amount of Rs.25 lakhs by way of share application and share premium in share of M/s. Turkhia Group of Companies and noticed that the assessing officer has not verified the issue regarding the high share premium paid by assessee to M/s. Turkhia Group of Companies therefore after serving show cause notice and considering reply, the CIT passed order u/s 263.
Contention of the Assessee
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