CIT cannot revise assessment to make afresh examination of issues already examined by AO
Brief of the case:
ITAT Mumbai held that CIT cannot revise assessment for making afresh examination of an issue already examined by the AO who has taken one of the possible views because there has been no erroneous order which could ordered to be revised.
Facts of case:
CIT passed an order u/s 263 setting aside the assessment directing AO to make fresh assessment for AY 2004-05. 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. Such lack of inquiry made CIT to believed that assessment order was erroneous insofar as prejudicial to the interests of revenue. Aggrieved by the said order the assessee filed the present appeal before the ITAT.
Contention of the Assessee:
- It was submitted that during the course of reassessment proceedings the assessee has produced documentary evidences of source of funds used in investing in shares of Turkhia Group of Companies and of investment made in shares of the group.
- Assessing Officer after detailed examination and making full inquiries in the matter passed the assessment order and therefore there is no case of the said order being erroneous.
- Further, the assessment order was passed on the basis of evidence on record and inquiries to the source of money and investment made by assessee company. And since there is no other new evidences which has been brought on record to substantial the ground taken by CIT, therefore, there is no justification in passing the impugned order u/s 263.
Held by ITAT Mumbai:
