Income Tax Appellate Tribunal - Chandigarh
Jawaharlal Oswal, Ludhiana vs Pr.Cit-1, Ludhiana on 22 December, 2021
आयकर अपील य अ धकरण,च डीगढ़ यायपीठ "ए", च डीगढ़
IN THE INCOME TAX APPELLATE TRIBUNAL,
CHANDIGARH BENCH 'A' , CHANDIGARH
ीमती अ नपण
ू ा गु ता, लेखा सद"य एवं ी एन.के. चौधर , याय)क सद"य
BEFORE SMT.ANNAPURNA GUPTA, ACCOUNTANT MEMBER
AND SHRI N.K. CHOUDHRY, JUDICIAL MEMBER
आयकर अपील सं./ ITA No.65/Chd/2021
नधा रण वष / Assessment Year : 2016-17
Kamal Oswal, C/o Oswal Woollen Mills बनाम The Pr. Commissioner of
Ltd., B-XXIX-105, G.T. Road, Sherpur, Income Tax-1,
Ludhiana. Ludhiana.
थायी लेखा सं./PAN NO: AACP09697F
अपीलाथ /Appellant यथ /Respondent
आयकर अपील सं./ ITA No.66/Chd/2021
नधा रण वष / Assessment Year : 2016-17
Jawaharlal Oswal, C/o Oswal Woollen बनाम The Pr. Commissioner of
Mills Ltd., B-XXIX-105, G.T. Road, Income Tax-1,
Sherpur, Ludhiana. Ludhiana.
थायी लेखा सं./PAN NO: AABP02481J
अपीलाथ /Appellant यथ /Respondent
&
आयकर अपील सं./ ITA No.67/Chd/2021
नधा रण वष / Assessment Year : 2016-17
Ritu Oswal, C/o Oswal Woollen Mills Ltd., बनाम The Pr. Commissioner of
B-XXIX-105, G.T. Road, Sherpur, Income Tax-1,
Ludhiana. Ludhiana.
थायी लेखा सं./PAN NO: AABP02484P
अपीलाथ /Appellant यथ /Respondent
2
ITA No.65,66 & 66/Chd/2021
A.Y. 2016-17
Page 2 of 15
नधा रती क ओर से/Assessee by : Shri Navdeep Sharma, Adv.
राज व क ओर से/ Revenue by : Sarabjeet Singh, CIT DR
सन
ु वाई क तार%ख/Date of Hearing : 12.11.2021
उदघोषणा क तार%ख/Date of Pronouncement: 22.12.2021
(Hearing through Webex)
आदे श/ORDER
Per Annapurna Gupta, Accountant Member:
Th e a bo ve a p p ea l s ha v e bee n pr e fe r re d b y di f fe re nt a sse sse e s a ga i nst se p a ra te or de r s of the P r in ci p a l C om mis si on e r of I nc ome Ta x, Lu d hi a na -1 (i n sh or t t he 'Ld. P r .C I T) a ll d a te d 31 . 03 . 2 02 1 a l l re l a ti ng to a sse ssme nt ye a r 2 0 1 6 -17 pa sse d i n e xe r c ise o f re vi si on a ry jur i sd i cti on u/s 26 3 of t he I n come Ta x A ct, 1 9 61 (h e re i n a fte r r e fe r re d to a s ' Act '.
At t he outse t it w a s s ta te d th a t t he is sue a n d fa c ts in vol ve d in a l l th e se a p pe a l s we r e i de nti c a l, ther e f ore , a ll the a p pe a l s we re he a r d toge the r a n d a r e d i sp ose d of f b y t hi s con sol id a t e d or de r for the sa ke of co nv e nie n ce .
2. Th e L d .C oun se l for the a ss e s see sta te d tha t h e s hal l b e de a li n g w it h t he fa c ts i n t he case of Ka ma l Os w a l i n I TA N o.6 5 /C h d /2 0 2 1 f or ma k in g hi s a r gu me n ts a n d s ta te d th a t the f a ct s i n th e r e ma i ni n g tw o a p pe a ls we re i de nt ic a l. Th e 3 ITA No.65,66 & 66/Chd/2021 A.Y. 2016-17 Page 3 of 15 Ld. D R fa i r l y a d mitt e d to th e sa me th ough p oi nte d o ut th a t the onl y d if fe re nce i n th e f a cts r e l a te d to the d ate of in ve s tme n ts ma d e by d i ffe re nt a ss e sse s thou gh all a dmi tte d ly ma d e in the s a me ye a r .
3. W e h a ve h e a r d both th e pa r tie s . As tr a n sp ir e s f r om th e or de r of the Ld. Pr . C I T, t he j ur i sd i cti on t o re vi se t he or de r of th e A O w a s a ss ume d b y th e Ld . Pr . C I T on fi n di n g fr om a pe r usa l of t he as se s sme n t re c ord th a t th e AO h a d f ail e d to ma ke d ue i n q ui r ie s re l a ti n g to t he in ve stme n ts ma d e b y the a sse sse e in the sha r e s o f a c omp a ny of U n ite d Ki n gd om, M /s C ro wn st a r Ltd . , du r in g th e ye a r . Th e i n ve s tme n t a moun te d to R s. 66 , 63 , 0 28 / -. Th e c on te n ts o f sh ow c a us e n ot i ce i ss ued to t he a sse ssee da te d 01 . 0 3. 2 0 21 a s re p ro du ce d i n the or de r of th e Ld . P r .C I T a s u nd e r :
"2.3 That on the perusal of the record it is revealed that during the year under consideration i.e. AY 2016-17, you have invested Rs.66,63,028/-28/- in the shares of M/s Crownstar Ltd. of United Kingdom. It is also seen from the record that all the directors of this company are your family members. It is also seen from the record that your Account No. 21062509395 being maintained with Allahabad Bank, credited Rs 70,00,000/- from M/s Abhilash Growth Pvt. Ltd as Loan Repayment and on the same date amount of Rs. 66,63,028/- has been invested in the share of M/s Crownstar Ltd. The perusal of the assessment records reveals that the AO has not examined the business activities being carried out by M/s Crownstar Ltd. in which all the directors are appeared to be a family member. Further perusal of the records reveals that the AO has not investigated the nature of 4 ITA No.65,66 & 66/Chd/2021 A.Y. 2016-17 Page 4 of 15 investment made and what type of financial return has been received from this investment. Further it is noticed that the AO had done assessment although e-Assessment Portal but on perusal of records available it is seen that the AO has not placed his opinion on this portal even after having facility available on ITBA whether he has verify that investment and income relating to foreign financial interest have been duly disclosed which was the main issue of the case."
4. Th e r e a f te r due r e p l y wa s fi le d b y th e a ss e ssee af ter con si de r in g w hi ch th e Ld . P r. C I T he ld the or de r p ass e d to be e r r one ous so a s to ca u se p re jud i ce to the Re ve n ue on a ccou nt of n on e xa mi n a tio n by th e A O of th e na t ur e of bu si ne ss a c ti vi ti e s as we ll as f in a n ci a l w or t h to M/s C ro wn st a r Ltd ., a s a l so the fi n anc ia l r e tur n f rom th e s a id in ve s tme n t.
5. Th e con te n ti on of t he Ld. C ou ns e l for th e a s se sse e is tha t th e a s se s sme n t i n th e im p u gne d c a se w a s a l i mi te d scr u tin y a sse ssme nt sol e l y for t he p ur p ose of e xa mi n in g wh e the r the i nv e st me n t and in co me r e l a ti n g to fo re ig n fi na n ci a l i n te res t w e re d ul y d i scl os e d a nd du r in g a sse ssme nt pr ocee d i n gs the a s se sse e h a d fi le d re p ly to the sa me d u ly su b sta n ti a te d w i th ev id e n ce s s ta ti ng th a t the in ve s tme n t ma d e in M/s C ro w n sta r Lt d. a mo u nti n g to Rs. 66 , 6 3, 0 2 8/- w a s d u ly r e f le cte d in th e B a la nce S he e t of the a s se sse e a n d a l so i n th e i nc ome ta x r e t ur n f ile d a n d it ha d a ls o b ee n e xp l a i ne d to the AO t ha t t he i n ve stme n t ha d 5 ITA No.65,66 & 66/Chd/2021 A.Y. 2016-17 Page 5 of 15 be e n sour ce d fr om th e r e t ur n o f l oa n g iv e n b y t he asse ssee to on e M/s A b hi la sh G ro wt h Pv t. Ltd . a moun ti ng to Rs. 70 la c s. To th is e nd our a tte n tio n w a s dr a w n to the fol l ow ing doc ume nts p l a ce d i n a p a p e r bo ok b e f ore us :
a ) cop y of t he not ice i ssue d u /s 1 4 3 (3 ) of the Ac t statin g th a t th e is su e nee d i ng e xa mi na ti on , p l a ce d a t P a p e r B ook pa g e N os. 25 & 2 6 b ) r e p l ie s f ile d b y the a sse ssee da te d 0 2 .0 8 .2 0 1 8 a nd 2 0 .1 2 .. 2 01 7 , p la c e d a t P a pe r B ook p a ge N os .2 7 to 3 0 & 3 0 -A to 3 0 -O con ta i ni ng the a for e sa i d re pl ie s o f the a ss e ssee a s a ls o n e ce ss a r y d ocu me n ts e vi de n ci ng th e d is cl osu r e of in ve stme n t i n M/s C r ow ns ta r Ltd . i n th e B a l a nc e Shee t of th e a sse ssee , in t he i nc ome ta x r e tu r n a nd
c) th e s our ce of in ve stme nt be i ng r e tu r n of l oa n fr om M /s Ab h il a sh G r ow th P vt . Lt d. e vi d e n ce d by c op y of l e d ge r a ccou nt of th e sa i d comp a n y a n d a l so cop y of b a nk sta te me n t of the a s se s se e r e fl e c tin g the re ce i pt of th e sa me fr om Ab h il a s h Gr ow th Pv t. Ltd . and i ts i m me d ia t e ut il i zati on f or the p ur p ose of i n ve s tme nt b y th e a sse ssee in M /s C r ow ns ta r L td .6
ITA No.65,66 & 66/Chd/2021 A.Y. 2016-17 Page 6 of 15
6. B e s i de s the Ld. C ou ns e l f or t he a s se s se e poi n ted out tha t i t h a d a l so b ee n s ta te d to the Ld . P r .C I T th a t n o i n come ha d b e e n e a r ne d fr om the s a id in ve stme n t a nd to thi s e n d our a tt e n tio n w as d ra wn to the r e p l y of the a s se sse e s ta ti ng so p la c e d at Pa pe r B ook p a ge N o. 44 . Hi s c ont e nt ion , the re fo re , w a s tha t the is sue of in ve stme n t ma d e b y t he a sse sse e in a co mpa n y out si de I nd i a w a s th e l imi t e d pu r p ose for f r a min g th e a s se s sme n t, w hi ch h a d be e n du l y r e p l ie d by the a s se s se e a nd a cc or di n gly a c ce pte d b y the AO a ls o a nd , the re fo re , t he re w a s n o e r ro r in th e or de r of th e AO . H e ha s a ls o dr a w n o ur a tte n ti on to t he f a ct t ha t i d e n tic al in ve s tme n ts in th e sa me compa n y were ma d e by the a sse sse e in the p r e ce d i ng a n d su cc ee d i ng ye a r s a ls o w h i ch we re a l so e x a min e d d u r in g a sse ssme nt p r oce e din gs and a cce pte d b y the A O . To th i s e nd ou r a tte n ti on wa s d r a w n to va r io us d ocu me n ts r e l a ti ng to a ss e s sme n t ye a rs 2 0 15 -1 6 , 20 1 7 -1 8 a nd 2 018 -1 9 to the e ffe c t r e la ti n g t o i nq u ir ie s ma de by th e AO re ga rd i ng th e i nve stme nt s ma de b y the a sse ssee in M /s C r ow n sta r Lt d. , UK a nd r e p l ie s f i le d b y the a sse ssee di sc lo si ng th e i nv e st me n ts i n hi s fi n a nc ia l s ta teme nt s a n d a ls o hi s r e tu r n of in come a nd a l s o e xp l a i ni ng t he s our c e of the sa me . Th e d ocu me n ts r e la ti n g to a sse ssme nt ye a r 2 0 1 5- 7 ITA No.65,66 & 66/Chd/2021 A.Y. 2016-17 Page 7 of 15 16 w e re p la ce d be f ore u s a t Pa pe r B ook p a ge N os.1 to 2 0 as un de r :
1) Cop y of No tice d ated 0 5 .0 8 . 20 1 6 u / s 1 4 3 ( 2) of Inc o me T ax Ac t f o r A .Y . 2 0 1 5 -1 6.
2) Cop y of l e tte r d t. 2 0. 0 8 .2 0 1 6 in re pl y to N o ti c e d t.0 5 . 08 . 2 01 6 f or A. Y . 2 0 15 - 1 6.
3) Cop y of l etter d t. 14 . 0 3. 2 0 1 7 in A . Y . 2 0 1 5- 1 6.
4) Cop y of Asse ssme n t Ord er p a sse d u / s 1 4 3 (2 ) of th e Ac t f o r A. Y. 2 0 1 5 -1 6 ."
Re l a ti ng t o a sse ss me nt y e a r 2 017 -1 8 the doc ume nts were pl a ce d a t p a pe r book p a ge N o. 42 to 48 A & B a s u nd e r :
1) Cop y of n otice d a ted 0 1. 0 8 .2 0 1 9 i ssu ed u / s 14 2 ( 1 ) of In co me T ax A ct f or A. Y. 201 7 - 18 .
2) Cop y of repl y d a te d 0 2 .0 8 . 20 1 9 in respon se to no tice d a te d 0 1 .0 8 .2 0 1 9 .
3) Cop y of l ette r d a ted 1 6 . 07 . 2 01 9 f ile d du rin g Asse ssmen t Proc eed ing s f or A. Y. 2 01 7 - 18 .
4) Cop y of A sse ssme n t Or de r d ated 0 6 . 09 . 2 01 9 pa s sed u / s 1 4 3 (3 ) of th e Ac t f o r A .Y. 2 0 1 7 -1 8 . Re l a ti ng t o a sse ss me nt y e a r 2 018 -1 9 the doc ume nts were pl a ce d a t p a pe r book p a ge no. 4 9 - 7 9 a s u nd e r:
1) Cop y of n otice d a ted 2 2. 0 9 .2 0 1 9 i ssu ed u / s 14 3 ( 2 ) of In co me T ax A ct f or A. Y. 201 8 - 19 .
2) Cop y of repl y d ated 0 3. 1 0 .2 0 1 9 f il ed wi th Asse ssin g Of f ice r in As se s smen t Proc eed in g s f or A. Y. 2 01 8 - 19 .
3) Cop y of n otic e d a ted 2 7 . 01 . 2 02 0 f or A. Y 2 0 1 8 -
19 i ssu ed by the A sse s sin g Of f ice r.
8
ITA No.65,66 & 66/Chd/2021 A.Y. 2016-17 Page 8 of 15
4) Cop y of repl y d t. 0 6. 0 2 .2 0 2 0 f il ed wi th Asse ssin g Of f ic er f o r A .Y . 2 0 1 8- 1 9.
5) Cop y of No tic e d a te d 25 . 0 2. 2 0 2 0 is su ed u / s 14 2 ( 1 ) of In co me T ax A ct f or A. Y. 201 8 - 19 .
6) Cop y of repl y d a te d 26 . 0 2. 2 0 20 f il ed du r in g th e A sse ssmen t p roc eed in g s f or A.Y . 2 0 18 - 19 .
7) Cop y of A sse ssme n t Or de r d ated 2 5 . 11 . 2 02 0 pa s sed u / s 1 4 3 (3 ) of th e Ac t.
7. Th e Ld .C ou ns e l fo r the a ss e ssee , th e re fore , st a te d th a t the i ss ue re q uir in g e xa mi na tio n in the li mit ed scr u ti ny a sse ssme nt p ro cee di n gs ha d b ee n r e pl ie d to the sa t is fa c ti on of the A O by th e a sse ssee not on ly f or th e i mp u g ne d ye ar bu t a ls o i n t he p r e ce d in g a nd su cc ee d i ng ye a rs a nd ha d be e n a c ce p te d i n th e s a i d ye a rs a l so . He , the re f or e , s ta te d tha t th e re w a s n o r e a so n to h old a n y e r r or h a vi ng cr e p t in the or de r of the A O by w a y of n on -e xa mi n a ti on of th e i ssue of i n ve s tme n t i n M /s C r ow n sta r L td . . H e , f ur th e r st a te d the Ld. P r. C I T h a s f oun d t he o rd e r e r ro ne o us s in ce the AO ha d fa i le d to e xa mi n e the b us ine s s acti vi ti e s of M/s C row n sta r Ltd ., w h ic h h e p oin te d ou t, th e as se s se e ha d e xp la i ne d the na tu r e of b us ines s a cti vi ti e s c a r rie d ou t b y M/s C r ow n sta r Ltd . i n th e a s se s sme nt pr oc ee din gs re la t in g t o a s se s sme n t ye a r 2 0 1 7 -1 8 a s in d ul gi ng i n the tr a d i ng i n b ond s, e q ui ty a s we ll a s f in a nc i a l se cu ri ty o f a l l ty pe s. O u r a tt e ntio n w a s dr a w n to P a pe r B ook pa g e N o .4 4 b e i n g th e rep ly of th e 9 ITA No.65,66 & 66/Chd/2021 A.Y. 2016-17 Page 9 of 15 a sse sse e d a te d 0 2. 0 8 .2 0 19 i n ass e ss me n t p r ocee d i ng s for a sse ssme nt ye a r 2 01 7 -1 8 sta tin g th e a b ove fa c ts. He , the re fo re , s ta te d th a t th e na ture of b usi ne ss acti vi ti e s of M /s C r ow ns ta r L td . w a s a l so p a r t of r e cor d of the asse ssee a nd th e re w a s, th e re f ore , no me ri t i n t he f i nd i ng o f th e Ld . Pr . C I T th a t th e b us in e s s a ct iv itie s of M /s C r ow ns tar Ltd . ha d n ot be e n look e d i n to by th e AO. He a l te r n a ti ve l y con te n de d th a t i n a ny ca s e , th e n on- e xa mi na ti on of th e is sue of in ve stme nt ma d e by th e a sse ssee, th oug h ve he me ntl y de nie d , d oe s not cau se a ny p re j ud ice t o the in te re st of the Re ve nue a nd , the re fore a l so, he stat e d th a t the o rde r of the Ld. P r. C I T p a ss e d u/s 2 6 3 of th e Ac t, w a s not su sta i n a b le in l a w.
8. Th e Ld . D R, on t he othe r ha n d , rel ie d up on t he or de r of the Ld . P r . C I T a n d f ur th e r p ointe d out th a t de s p ite the a sse sse e fi l in g doc ume nts , b e i ng th e s ha re ce r tif i ca te i ss ue d to i t b y M /s C r ow n sta r Ltd ., th e A O ha d fa i l e d to in q ui r e fu rt he r i n to a r ti cl e s a n d Me mor a n du m of A ss oci a ti on o f the sa i d com p a ny a s pe r w hi ch th e s a id c e r ti fi ca te s we re i ss ue d a nd th is n on -i nq ui r y h a d r e sul te d i n t he e rr or i n th e or d er of the A O. He f ur th e r e la b or a te d h is c onte nt ion b y sta tin g tha t th e i nq u iry in the a rt ic le s a nd Me mor a n d um of 10 ITA No.65,66 & 66/Chd/2021 A.Y. 2016-17 Page 10 of 15 Ass oci a ti on of M /s C ro wn st a r Lt d ., a c omp a ny s i tua t e d i n U. K. wo ul d h a ve re ve a le d the b a ck gr ou nd and legal fr a me w or k i n w hich t he comp a n y wa s op e r a t in g t he re a n d i n tur n wo ul d h a v e re ve a le d a n y b e ne f it re su lti n g to th e a sse sse e a s a c ons e q ue n ce the re of .
9. To thi s, the Ld . C oun se l f or th e a ss e ssee c oun te re d by sta ti n g tha t the pow e r s u/s 2 6 3 of th e A ct co ul d n ot b e e xe r c ise d for ma k i ng f i sh in g a n d r ov in g i nq u ir i e s and th ere ha s to be spe ci f ic f i nd i ngs of e r ror i n the o rde r of th e Ld . Pr . C I T. 10 . H a vi ng h e a r d th e con te n ti ons of b ot h the p a r ti e s a nd ha v in g go ne thr ou gh th e d oc ume n ts fi l e d by b oth the pa r ti e s , we h ol d tha t t he e xe r c ise of ju r is di ct ion b y th e Ld . Pr . C I T to r e vi se t he or de r of the AO in the p re sen t c a se i s not sus ta i na b l e i n la w on a ccou nt of hi s a bj e c t f a il u re to poi n t out a ny e r r or in the or d er of t he AO . Th e fa cts on re cor d de mon str a te th a t the a sse ss me n t w a s in iti a te d for the l imi te d p ur po se of i n q ui rin g w h e the r t he fore ig n investments made by the assessee were duly disclosed as also the in come th e re f r om. The re p l ie s fil e d b y the a s se sse e du r ing a sse ssme nt pr ocee di n gs c omp le tel y s a ti sf ie d thi s pu r p ose of in q ui r y, d is cl osi ng th e i nve st me nts ma d e by the as se s see in 11 ITA No.65,66 & 66/Chd/2021 A.Y. 2016-17 Page 11 of 15 M /s C ro wn st a r L td ., U. K. i n i ts B a l a nc e Shee t an d al so i n its i nc ome tax r e tu r n. IN fa ct, the a ss e ssee ha s a l so di sc lo se d the sou r ce of i n ve s tme n t ma d e in the s a id comp a ny a s b e i ng f r om lo a n gi ve n b y i t to M/ s A bh i la s h Gr ow th Pv t. Ltd . r e t ur ne d t o i t d ur i ng th e ye ar a n d h a s e vi de n ce d /s ub sta n ti a te d the s ame w it h cop y of l e d ge r a ccou nt of M /s Ab h il a sh P vt . Lt d. and a l so the b a nk sta te me n t of t he a ss e s see re f le ctin g the tr a n sa c tion. Th e r e is n o i ota of d ou b t, th e re f ore , th a t th e i s sue wh ic h w a s re q ui re d to be e xa mi ne d d ur in g a sse ss me nt p r oce e d in gs w as du ly re p lie d to b y th e a s se s see a nd su b sta nti a te d w it h e vi de n ce a n d th e AO , i t c a n b e un he s i ta ti ngl y sa i d , w a s ri gh tl y sa ti s fi e d w it h th e re p l y of t he a s se sse e . No a noma l y in th e re pl ie s fi led b y the a sse s see ha s bee n po in te d o ut, by the Ld. Pr.CIT.to cast any doubt on the nature of the transaction The only grievance is that the AO had not in q ui r e d i nto the n a ture of the b us in e s s a c tiv it ie s c a rr ied out b y M/s C r o wn st a r Ltd . . Th is e rr or p oin te d ou t b y the Ld. P r .C I T, w e f in d , i s t ota l ly mis p la c e d . F i r st a nd for e most thi s was n ot the p ur p ose f or th e li mi te d s cr ut iny a sse ssme nt , w hich on ly r e q ui re d the AO to i nq u ir e w he ther the i n ve s tme n t w e re d ul y dis cl ose d . Th e AO ha v in g e xa mi ne d the s ame , h e w a s n ot r e q ui re d to go be yon d the 12 ITA No.65,66 & 66/Chd/2021 A.Y. 2016-17 Page 12 of 15 sta te d p u rp ose . Th e a s se s sme n t or d e r ca n not be s a id to b e e r r one ous the re for e f or n ot h a vi ng e xa mi n e d a n is su e w h ic h it w a s n ot re q uir e d to. Eve n othe r w ise , we f in d t hat th e na tu r e of the b usi n e ss a c ti vi ti e s ca r r ie d out by M /s C ro wn st a r Ltd . h a d be e n sta te d b y th e a sse s see in the a sse ssme nt p ro cee di n gs re la t in g t o a ss e s sme n t ye a r 2 0 17 - 18 a nd w a s ve r y mu ch p a r t of t h e re cor d o f t he a ss e s see . For th is r e a s on a l so, t he fi n d in g of e r r or b y th e Ld. Pr . C I T of not ha v in g i nq u i re d in to t he na t ur e o f b us ine s s a cti vi ti e s of M /s C r ow ns ta r L td . i s to ta l ly mi s p l a ce d . A s f or th e i nc ome e a r ne d b y the a ss e ssee f r om t he s a id in ve stme nt n ot be in g in q ui r e d in to b y the Ld . Pr . C I T, th e a sse s see , we f in d , ha d sta te d to the Ld . P r. C I T th a t n o in come h a d bee n e ar ne d a nd ha d a ls o s ub st a nti a te d the sa me w i th h is f in a n ci a l sta te me n ts di sc losi ng s o. N oth in g ha s b ee n p ointe d out b y the Ld . P r .C I T t o d ou bt th i s e xp l a na t ion of th e a sse ssee ca l li n g f or f ur th er in ve sti ga t ion i nto it . 11 . Th e r e f or e , in v ie w of th e a b ove , w e hol d th a t the Ld . Pr . C I T ha s fa i l e d to po in t out a n y e r r or i n th e ord e r of the AO a n d th e re v isi ona r y p ow e r e xe r ci se d b y h im, t he re fore , u/s 26 3 of t he A c t i s n ot sus ta i n a b l e i n l a w . Th e c on te n tio n of th e Ld . D R th a t si nc e the AO ha d f a il e d to l ook in to the 13 ITA No.65,66 & 66/Chd/2021 A.Y. 2016-17 Page 13 of 15 a rt ic le s a nd Memor a n du m o f As s oci a ti on of M /s C r ow n sta r Ltd . w h i ch ma y ha v e re ve a le d ce r ta in b e ne f i t a c cr ui n g to the a sse sse e , we f i nd , me r i ts n o c o ns id e ra t ion , for t he re a son tha t th e Ld . Pr . C I T h a s n ot sp e ci f ic a ll y re fe r re d to t hi s a sp e ct i n h i s orde r p a s se d u/s 2 6 3 o f the Act . The Ld . D R ca n not e xp a n d the sc ope of the or de r in h i s a r gu me n ts be fore u s. E ve n oth e r w ise , e xe rci s e of re v is ion ar y p ow e r s re q ui re s a spe ci fi c fi nd i ng of e r ror i n the or de r of the AO a nd c a nn ot b e e xe r ci se d on s urmi se s a n d co nj ec tur e s th a t the i nq u ir y, i f con d uc te d , w ould h a ve re ve a le d p re ju d ice ca us e d to the Re ve nue . The re ha s t o b e a spe c if i c f in d in g tha t non - i nq u ir y ha d r e s ul te d in a p re ju d ic e b ei ng ca u se d to t he Re ve n ue a n d s e ct ion 26 3 of th e A ct i tse lf e mp ow e rs the Pr . CI T t o con d uc t in q ui r i e s a nd a r r iv e a t t his f in d i ngs . He ca n not e xe rci se h i s re v is iona r y p ow e r t o rest or e the ma tte r to the A O f or a r r i ve a t thi s f in d in g of e r r or .
I n vie w of th e a b ove , we se t as id e the or d e r of th e Ld. P r .C I T f in d in g no e r r or po in ted out b y hi m in the or de r pa s se d b y t he A O. 12 . It is r e le va n t to me n ti on he r e tha t th e fa c ts and ci rc ums ta nc e s in r e ma i ni ng oth e r a ppe a ls of t he tw o a sse sse e s in I TA N o. 6 6/C h d /2 02 1 a n d I TA N o.6 7 / C hd /2 0 2 1 14 ITA No.65,66 & 66/Chd/2021 A.Y. 2016-17 Page 14 of 15 a re a d mi tte d l y simil a r t o t he fa c ts of th e p re se nt ass e ssee i n I TA N o.6 5 /C h d / 2 0 2 1, w i th th e o nl y d i ff e r e n ce in fa c ts poi n te d out by th e Ld. D R be in g th e da te of ma k i n g in ve s tme n ts i n th e c omp a ny M/s C r ow ns ta r , tho ugh mad e i n the i mp ugn e d ye a r on ly . The sa i d fa c t is n ot ma te r i a l e no ugh t o a l te r /e ff e ct ou r de c isi on si n ce the fa ct r e ma in s tha t th e i ssu e was d ul y e xa mi ne d d ur i ng a s se s sme n t pr oc ee d i ng s a nd the re wa s n o fi ndi n g of e r r or a s s uch by th e Ld. P r .C I T i n the o rd e r p a sse d by th e AO . The re fo re , our de ci si on re n de red the re i n w il l a p p ly mu ta ti s muta n d is to th e othe r tw o a p pe a ls a ls o.
I n vie w of the a b ov e , the re fo re , w e se t a s id e the or d e r of the P r . CI T p a s se d u/s 26 3 o f the Ac t i n a l l the i mp ug ne d a pp e a ls be f ore us .
13 . I n t he re s ul t, the a b ove a p pe a l s of a l l the a s se sse es a r e a ll ow e d .
O r de r p r o n o u n ce d i n o pe n c o u r t on 2 2 / 1 2 / 2 0 2 1 .
Sd/- Sd/-
एन.के. चौधर अ नपणू ा ग ु ता
(N.K. CHOUDHRY ) (ANNAPURNA GUPTA)
याय)क सद"य/Judicial Member लेखा सद"य/Accountant Member
+दनांक /Dated: 22/12/2021
*रती*
15
ITA No.65,66 & 66/Chd/2021
A.Y. 2016-17
Page 15 of 15
आदे श क त+ल,प अ-े,षत/ Copy of the order forwarded to :
1. अपीलाथ / The Appellant
2. यथ / The Respondent
3. आयकर आय.
ु त/ CIT
4. आयकर आयु.त (अपील)/ The CIT(A)
5. ,वभागीय त न1ध, आयकर अपील%य आ1धकरण, च3डीगढ़/ DR, ITAT, CHANDIGARH
6. गाड फाईल/ Guard File आदे शानस ु ार/ By order, सहायक पंजीकार/ Assistant Registrar