Vaksons Metaplast Pvt Ltd Vs PCIT (Central) (ITAT Delhi)
Tribunal examined revision u/s 263 against an assessment u/s 153C arising from incriminating material found in search of Sumit Jindal group. Director of Assessee admitted during survey u/s 133A/132(4) that purchases & sales from Jindal’s entities were bogus & only 0.50% commission was earned. AO, after detailed enquiry, taxed only 0.50% commission u/s 69C. Assessee filed appeal before CIT(A) challenging the same. PCIT thereafter issued notice u/s 263 holding that entire bogus purchase of Rs.1,59,96,530 should have been added u/s 69C & taxed u/s 115BBE, & also alleged non-levy of interest u/s 234A.
Tribunal held that the core issue of bogus purchases & commission addition was already the subject matter of appeal before CIT(A), hence u/s 263 Explanation 1(c), PCIT could not assume jurisdiction on that very issue. As long as CIT(A) is seized of the matter, PCIT’s revision on the same issue is barred. Tribunal observed that AO had conducted enquiries, examined statements, verified ledgers & adopted a plausible view to tax only commission income. Such a view cannot be substituted by PCIT merely because he prefers a different conclusion. Accordingly, 263 proceedings on the bogus purchase issue were quashed as bad in law.
