Case Law Details
Ms Anil Kapoor Film Co. Pvt. Ltd. Vs Pr. CIT (ITAT Mumbai)
Conclusion: Revisional order passed by the Principal Commissioner in case of Anil Kapoor Film Co. Pvt. Ltd was upheld as AO had not made enquiries/verification, to satisfy himself with respect to creditworthiness of the lender and genuineness of the transactions before framing the assessment.
Held: Assessee was in the business of producing feature films/TV serials, declared nil income/loss from the business. AO completed assessment under section 143(3). Commissioner observed that assessee claimed to have obtained loan from one “M/s. A Pvt. Ltd.” amounting to Rs.2 crores and the confirmation of the loan transactions were furnished and the assessment order was passed. It was observed by CIT that the creditworthiness/genuineness of the transactions of the lender was never verified/examined by AO and even in the loan confirmation documents, the address of the lender was not mentioned and further assessee company neither filed the return of income of M/s A Pvt. Ltd. nor the bank statement, therefore, the assessment was held to be erroneous and prejudicial to the interest of Revenue. It was held revisional order passed by CIT was valid as AO should have made enquiries/verification, to satisfy himself with respect to creditworthiness of the lender and genuineness of the transactions before framing the assessment, thus, AO was directed to pass fresh assessment order after providing due opportunity of being heard to assessee.
FULL TEXT OF THE ITAT JUDGMENT
The assessee is aggrieved by the impugned order dated 08/08/2018 of the Ld. Pr. Commissioner of Income Tax, Mumbai, invoking revisional jurisdiction under section 263 of the Income Tax Act, 1961 (hereinafter the Act).
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