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Income Tax Appellate Tribunal, KOLKATA BENCH “A”, KOLKATA
Before: SH. P.M.JAGTAP & SH. S.S.VISWANETHRA RAVI
PER S.S. VISWANETHRA RAVI, JUDICIAL MEMBER
This appeal by the assessee against the order dated 28.02.2017 passed by CIT(A)-9, Kolkata for AY 2012-13.
After hearing both the parties, we find that Ld.CIT u/s 263 proceedings directed the AO to conduct inquiries with the Directors of the share subscribing company. The contention of the Ld.AR was that no such inquiry was conducted by the AO and urged to remand the matter to the AO. Therefore, taking into consideration the facts and circumstances of the case and the issue involved therein, we remand the matter back to the file of AO to conduct inquiries as set out hereunder:-
i) Examine the genuineness and source of share capital, not on a test check basis, but in respect of each and every shareholder by conducting independent enquiry not through the assessee. The bank account of the entire period should Year: 2012-13] be examined in the course of verification to find out the money trail of the share capital. ii) Further the A.O. should examine the directions as well as examine the circumstances which necessitated the change in directorship if applicable. He should examine them on oath to verify their credentials as director and reach a logical conclusion regarding the controlling interest. iii) The A.O. is directed examine the source of realization from the liquidation of assets shown in the balance sheet after the change of Directors, if any.”
In view of the above, the grounds raised by the assessee are allowed for statistical purposes.
In the result, the appeal of the assessee is allowed for statistical purposes.
Order pronounced in the open court on 19.09.2018.