PCIT Vs Prabhu Poly Pipes Ltd. (Calcutta High Court)
The Calcutta High Court dismissed the appeal filed by the Revenue under Section 260A of the Income Tax Act, 1961, against the order dated 23 February 2023 passed by the Income Tax Appellate Tribunal, A-Bench, Kolkata, for assessment year 2014-15. The Revenue challenged the Tribunal’s decision setting aside the order passed by the Principal Commissioner of Income Tax, Central–1, Kolkata under Section 263. The substantial questions raised concerned whether the Tribunal had erred in setting aside the Section 263 order and in holding that the Assessing Officer had adequately examined the identity, creditworthiness and genuineness of the unsecured loan providers.
Read SC Judgment in this case: SC Upheld Section 263 Relief as AO Had Examined Unsecured Loans
The Tribunal had recorded that the Assessing Officer called for all details relating to the unsecured loans taken by the assessee during the year and also referred to seized material in the notice issued under Section 142(1). The assessee furnished necessary replies along with supporting evidence during the assessment proceedings. The Assessing Officer, after considering the details, accepted the identity, creditworthiness and genuineness of the cash creditors and completed the assessment under Section 153A read with Section 143(3) of the Act.
