Case Law Details
Bonjour Estates (P) Ltd. Vs PCIT (ITAT Delhi)
ITAT Delhi held that PCIT is not empowered to invoke revisionary proceedings u/s. 263 of the Income Tax Act, merely because he is not agree with the view taken by the AO. Accordingly, revisionary proceedings bad in law.
Facts- The ground of appeal relates to validity of revisionary proceedings initiated by Ld. PCIT-1 u/s. 263 of the Income Tax Act 1961.
It is submitted that the assessee for A.Y. 2010-11 filed its return of income u/s. 139 of the Act on 24.09.2010 which was processed u/s. 143(1) on 11.02.2011. Subsequently the AO initiated reassessment proceedings by issuing notice u/s. 148 of the Act on 24.03.2017 and passed reassessment order u/s. 143(3) r.w.s 147 of the Act on 13.12.2017. The reopening was based on information received from DCIT, CC-2(2), Mumbai wherein the AO challenged genuineness of share capital received by the assessee company from two entities viz. Advanced Technology Ltd. and Yantra Natural Resources Ltd. The assessee company during the reassessment proceedings to avoid litigation and to buy piece of mind surrendered the stated transaction and paid due taxes etc thereon. Reassessment proceedings were initiated pertaining to said two parties and closed on 31.12.2017 after passing reassessment order by the AO.
Thereafter, the assessee received notice u/s. 263 of the Act on 09.02.2021 and the PCIT passed order u/s. 263 of the Act on 28.03.2021, wherein it was alleged that the AO has not made proper inquiries in respect of share capital received by the assessee company from other entities.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
Author Bio
