Decent Securities Private Limited Vs PCIT (ITAT Delhi)
Delhi ITAT quashed second revision order passed u/s 263 holding that Pr. CIT exceeded jurisdiction by re-revising a plausible assessment view already taken by AO. In M/s. Decent Securities (P) Ltd vs. Pr. CIT, ITA No. 4799/Del/2025, AY 2017-18, Tribunal noted that original assessment u/s 143(3) dated 31.12.2019 had examined unsecured loans u/s 68. Though first revision u/s 263 dated 11.03.2022 was passed when appeal against assessment was already pending before CIT(A), AO thereafter passed fresh order u/s 143(3) r.w.s. 263 on 30.03.2023. Pr. CIT again invoked s.263 by order dated 18.03.2025 alleging failure of AO to add loans relating to 15 creditors & short addition in respect of Sahyog Group entities.
Tribunal held that AO, while giving effect to first 263 order, had examined additional evidences on record & consciously taken a plausible view by not making addition u/s 68 in respect of 15 creditors. Once AO had carried out enquiries & adopted a sustainable view, revision u/s 263 was impermissible as per Malabar Industrial Co. Ltd (243 ITR 83) & Max India Ltd (295 ITR 282). Tribunal further held that alleged addition of ₹3.13 crore relating to Sahyog Group was merely interest payable through journal entries & not “a sum of money received” during the year, hence outside scope of s.68, relying on SC ruling in H.H. Sri Rama Verma vs. CIT (187 ITR 308). As no error prejudicial to Revenue was demonstrated, second revision order was held invalid & quashed in entirety.
FULL TEXT OF THE ORDER OF ITAT DELHI
