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steps towards non-adversarial tax regime as instructed by CBDT dated 07.11.2014, the Ld. first Pr. CIT was pleased to set aside the first assessment order dated 16.03.2015 with the direction for de-novo assessment and directed the AO (Second) to carry out proper examination in the light of the directions made by him. According to Shri S.K. Tulsiyan, all the aforesaid directions of the First Ld. Pr CIT were obeyed in letter and spirit by the second AO. And accordingly it was brought to our notice that second AO had conducted enquiry by first of all issuing notice on 04.05.2016 and 12.05.2016 u/s. 142(1) of the Act. According to Shri S.K. Tulsiyan pursuant to said notice, Shri Rahul Choudhary, A/R of the assessee-company appeared before the second AO which fact has been acknowledged by the second AO in the assessment order; and the second AO also admits that he had produced paper & documents as requisitioned (copy of ITR, audited accounts, computation of income, details of directors, details of business activities, details of increase in share capital, Form 2 and Form 5, list of shareholders, details of bank account were filed (Refer voluminous P.B.III page 64-492). The Ld. A/R also pointed out that in the assessment folder, the aforesaid details were already gathered by the First AO and it contained notice u/s. 133(6) of the Act to all the shareholders wherein it were directed to prove their respective identity, genuineness and creditworthiness of the share transaction as required by the First AO vide his notice dated 09.01.2015 which fact has been taken note by the First Pr. CIT in his order dated 28.03.2016. Shri S.K. Tulsiyan also drew our attention to the fact that pursuant to the notices u/s 133(6) of the Act, all the shareholders have replied to the queries to prove their respective identity, genuineness and creditworthiness as well as the source of funds which fact is evident from pages 64-492 of the P.BIII. Thereafter, Shri S.K. Tulsiyan pointed out that the second AO after being satisfied with the veracity of the documents in the assessment folder as well as documents produced before him pursuant to the notice dated 12.05.2016 directing the assessee company to furnish the documents of the second source of the money received from the share applicants which were produced from five (5) of the investors vide letter dated 17.05.2016 (refer pages 1-220 PBII). After verifying the documents the relevant observation of the second AO at page-6 of his order is as under:

AO has simply jumped to the conclusion and treated the share premium as unexplained cash credit. The First Ld. Pr. CIT found fault with the action of AO for violation of natural justice. Therefore, according to the First Ld. Pr. CIT the first original assessment order framed u/s. 143(3) dated 16.03.2015 was in violation of direction of Ld. Pr. CIT, Kolkata in connection with Board's circular and office memorandum dated 07.11.2014 of CBDT in respect of adherence to non-adversarial tax regime was not followed by the first AO while framing the assessment order dated 16.03.2015 and, therefore, he found it fit to order de-novo assessment and gave direction to examine the share capital & premium collected by assessee.

highlighting the transactions." Further, the First Ld. Pr. CIT mainly found fault with the AO's order for non-adherence of the CBDT Office Memorandum dated 07.11.2014 (steps for non-adversarial tax regime) and not verifying the documents. The First Ld. Pr. CIT found fault with the AO' s order in not discussing the basis on which adverse inference was drawn against the assessee. Moreover, the First Ld. Pr. CIT found fault with the AO for not bothering to examine the contention of the assessee or to bring on record anything against the assessee and simply added the share premium while accepting the share capital collected by assessee. Therefore, according to the First Ld. Pr. CIT, the first original assessment order framed u/s. 143(3) of the Act dated 16.03.2015 was against the CBDT Office Memorandum (supra) and, therefore, he found it fit to order de-novo assessment to properly examine the share capital & premium collected by assessee. He also directed that the assessment proceedings to be initiated at the earliest and to be completed without waiting for time bar limit. With the aforesaid direction, the First Ld. Pr. CIT has set aside the first original assessment order dated 16.03.2015.