NJ India Invest Private Limited Vs PCIT (ITAT Surat)
In a decision concerning revisionary powers under Section 263 of the Income-tax Act, the Income Tax Appellate Tribunal quashed the order passed by the Principal Commissioner of Income Tax against the assessee for Assessment Year 2021-22. The assessee-company, engaged in the business of acting as a broker, sub-broker, and distributor of financial products, had filed its return declaring total income of Rs.2,05,54,38,900/-. The case was selected for complete scrutiny under CASS on the allegation that substantial purchases were made from suppliers who were either non-filers or had filed non-business returns or disclosed lower turnover. The assessment was completed under Sections 143(3) read with 144B, accepting the returned income.
Subsequently, the Principal Commissioner examined the assessment records and initiated revision proceedings under Section 263 on the ground that the Assessing Officer had failed to properly verify certain transactions reflected in the Insight Portal, particularly GST/TAS data. Notices under Section 133(6) had been issued to nine parties. Out of these, two parties did not respond, while one party allegedly denied having entered into transactions with the assessee despite GST data reflecting purchases. Based on this, the Principal Commissioner concluded that an amount of Rs.85,06,543/- was liable to be treated as unexplained expenditure under Section 69C read with Section 115BBE. The assessment order was therefore set aside with a direction to frame a fresh assessment after proper verification.
