ITAT upheld CITs’ revisional orders passed u/s 263 (of Income Tax Act, 1961)
ITAT upheld CITs’ revisional orders passed u/s 263 (of Income Tax Act, 1961)
Eastern Tea Traders Pvt Ltd and other companies filed meagre income. AOs issued notices u/s 148 (of Income Tax Act, 1961), and passed assessment orders, making nominal additions. AOs made formal enquiries about shares issued by companies at huge premium by issuing notices u/s 133(6) (of Income Tax Act, 1961) to some shareholders. AOs made no further investigation. CITs passed revisional orders u/s 263 (of Income Tax Act, 1961) in all cases. ITAT upheld CITs’ orders following Subhlakshmi Vanijya Pvt Ltd vs CIT’s case.-500662
1. In all the cases in the batch, several companies filed meagre income.
2. AOs issued intimations u/s 143(1) (of Income Tax Act, 1961).
3. Thereafter notices u/s 148 (of Income Tax Act, 1961) were issued either at the instance of such companies divulging a paltry escapement of income or otherwise.
4. AOs passed assessment orders u/s 143(3) (of Income Tax Act, 1961) r.w. s 147 after making nominal additions.
5. AOs, during the course of such assessment proceedings, made some formal enquiries about shares issued by such companies at huge premium by issuing notices u/s 133(6) (of Income Tax Act, 1961) to some of the shareholders and getting satisfied without any further investigation.
6. The jurisdictional CITs passed revisional orders u/s 263 (of Income Tax Act, 1961) in all such cases.
On appeal, the ITAT enumerated the scope of the CIT powers u/s 263 (of Income Tax Act, 1961), and held as under:
7. We find as has also been admitted by the ld. DR that facts and circumstances of the cases under consideration are mutatis mutandis similar to those decided earlier.
8. In our aforesaid order in Subhlakshmi Vanijya Pvt. Ltd., vs. CIT (ITA No. 1104/Kol/2014 A.Y. 2009-10), we held interalia that order u/s 263 (of Income Tax Act, 1961) cannot be declared as a nullity for the notice having not been signed by the CIT, when opportunity of hearing was otherwise given by the CIT.
9. Refusal by the Revenue to accept the written submissions of the assessee sent after the conclusion of hearing cannot render the order void ab initio. At any rate, it is an irregularity.
10. In view of the foregoing discussion and following the view taken in Subhlakshmi Vanijya Pvt. Ltd. (supra), we uphold all the impugned orders.
Case Reference - M/s. Eastern Tea Traders Pvt. Ltd Vs. Commissioner of Income Tax.
IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCHES : 'D ' : KOLKATA
BEFORE SHRI R.S. SYAL, AM & SHRI N.V. VASUDEVAN, JM
ITA No.1613/Kol/2013
(Assessment Year:2008-09)
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