Pegasus Integrated Systems Pvt. Ltd. Vs ACIT (ITAT Delhi)
Summary: The Delhi Bench of the Income Tax Appellate Tribunal, in ITA No. 1469/DEL/2022 for Assessment Year 2013-14, allowed the appeal filed by M/s Pegasus Integrated Systems P Ltd and quashed the assessment order, directing deletion of the impugned additions. The appeal arose from the order of the CIT(A)-26, New Delhi dated 02.06.2022.
The assessee had filed its return of income on 30.09.2013, which was processed under Section 143(1) of the Income-tax Act, 1961 by intimation dated 18.04.2014. The Tribunal noted that no notice under Section 143(2) was issued or served within the prescribed period and therefore held that the assessment stood completed before the search conducted on 23.07.2015.
Following the search and seizure operation conducted at premises connected with Shri Deepak Agarwal, Shri Mukesh Kumar and other group cases, notices under Section 153A were issued. The assessee filed its return declaring total income of Rs. 16,760/-. During the ensuing assessment proceedings, the Assessing Officer questioned the assessee regarding share capital of Rs. 2 crore received from TMR Projects [P] Ltd.
The assessee’s Director, Shri Maninder Singh Sahni, had made a statement under Section 132(4). Relying principally on that statement, the Assessing Officer concluded that the assessee had failed to explain share application money of Rs. 2 crore and an unsecured loan of Rs. 10 lakh received from TMR Projects Pvt Ltd. The Assessing Officer accordingly made an addition of Rs. 2.10 crore under Section 68 and a further addition of Rs. 2.10 lakh towards alleged commission for obtaining an accommodation entry. The CIT(A) confirmed the additions.
