Ahlcon Parenterals (India) Ltd. Vs PCIT (ITAT Delhi)
Summary: The appeal was filed by Ahlcon Parenterals (India) Ltd. against the order dated 25.03.2021 passed by the Principal Commissioner of Income Tax (Central), Delhi-3 under Section 263 of the Income-tax Act, 1961, arising from the assessment order passed under Section 143(3) for AY 2015-16. The assessment had been completed on 14.12.2017 at an assessed loss of Rs. 30,83,89,802 as against the returned loss of Rs. 30,94,55,123.
The PCIT invoked revisionary jurisdiction after examining the assessment records and identified, inter alia, undisclosed TDS of Rs. 4,929.43 resulting in alleged under-assessment of Rs. 4,29,493; a difference of Rs. 17,08,352 between purchases shown in the ITR and the invoice value of imports; and alleged wrong claims under Sections 32 and 32AC relating to plant and machinery, additions to building, furniture and fittings, exchange-rate and INR cost treatment and Modvat. According to the PCIT, these issues had not been properly examined during assessment and resulted in alleged under-assessment of Rs. 56,56,46,563. A show-cause notice under Section 263(1) was accordingly issued on 13.03.2020.
Before the PCIT, the assessee sought specific particulars concerning the alleged undisclosed TDS and difference in purchases. Regarding the other issues, it contended that the Assessing Officer had raised queries and allowed the claims after examination, producing the questionnaire issued during assessment proceedings and its reply. The PCIT nevertheless concluded that the assessment order was erroneous insofar as it was prejudicial to the interests of the Revenue.
