Case Law Details
PCIT Vs Klaxon Trading Pvt Ltd (Delhi High Court)
Delhi High Court held that revisionary power under section 263 of the Income Tax Act can be invoked only in case of ‘no enquiry’. The revisionary power cannot be invoked in case of ‘inadequate enquiry’.
Facts-
The respondent/assessee was incorporated in 1992, and since then, it has been trading in metal, including gold. The respondent/assessee filed its return on 28.09.2013. On 25.04.2014, a search and seizure action was conducted against the “Dua Group”. The respondent/assessee, concededly, belongs to the Dua Group.
The respondent/assessee was asked as to why the cash deposited in banks should not be treated as unexplained income. Regarding cash deposits, the respondent/assessee averred that they were cash sales proceeds made during the period in issue. It was also emphasised that the cash sales had been declared revenue from operations.
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