NIIT Ltd. Vs CIT (ITAT Delhi)
The Income Tax Appellate Tribunal, Delhi Bench “F”, decided a batch of appeals comprising six appeals filed by the assessee for Assessment Years (AYs) 2000-01 to 2005-06 and one appeal filed by the Revenue for AY 2002-03. The assessee’s appeals arose from orders passed by the Commissioner of Income Tax under Section 263 in relation to assessments framed under Section 153A of the Income-tax Act, 1961, while the Revenue’s appeal challenged relief granted by the Commissioner of Income Tax (Appeals) for AY 2002-03. The Tribunal pronounced its order on 8 July 2026.
Material Facts and Procedural Background
The assessee was engaged in providing learning and knowledge solutions and imparting computer education and training. It derived income from domestic business, exports, capital gains and other sources. For AY 2000-01, the original assessment under Section 143(3) was completed on 31 March 2003. A search under Section 132 was conducted on 10 November 2004, following which proceedings under Section 153A were initiated. During the search assessment, the Assessing Officer examined the appraisal report, seized material and the assessee’s explanations, ultimately making an addition relating to excess cost of repurchased items. The assessment was completed on 1 June 2006. The Commissioner (Appeals) subsequently allowed the assessee’s appeal on that issue, after holding that the repurchases from business partners were genuine. Thereafter, the Commissioner invoked revisionary jurisdiction under Section 263 on the ground that the assessment order was erroneous and prejudicial to the interests of the Revenue.
