Sun Developers and Builders Private Limited Vs ITO (ITAT Raipur)
ITAT Raipur held that since order passed by Pr. CIT u/s. 263 is quashed the addition made by AO u/s. 143(3) r.w.s 263 does no more survive. Therefore, appeal of the assessee allowed and addition made by AO liable to be quashed.
Facts- The Pr. CIT after culmination of the assessment proceedings called upon the assessee company to put forth an explanation as to why the assessment order passed by the A.O u/s. 143(3) of the Act, dated 31.03.2016 may not be revised, for the reason, that the A.O had without carrying out any verification summarily accepted the assessee’s claim of having received during the year under consideration genuine share application money of Rs.1.65 crore (out of Rs.2.35 crore) from M/s. Sakshi Real Estate Pvt. Ltd. As the Pr. CIT did not find favour with the explanation of the assessee company, therefore, he vide his order passed u/s. 263 of the Act, dated 30.03.2018 set-aside the assessment order with a direction to the A.O to frame fresh assessment after affording a proper opportunity of being heard to the assessee. Tribunal allowed the appeal of the assessee. High Court dismissed the appeal of the revenue since threshold limit criteria not meet.
