Ankur Dealcom Private Limited Vs PCIT (ITAT Kolkata)
Assessee filed the return of income declaring total income of ₹9,35,020/-. Return was processed u/s 143(1) & thereafter the case was selected for scrutiny through CASS to verify the transactions of assessee with another company whose registration had been cancelled by the MCA. Scrutiny assessment was completed u/s 143(3) read with section 144B on by NFAC, assessing total income of ₹8,60,49,114/-. Thereafter PCIT issued SCN u/s 263 on the ground of that order passed u/s 143(3) is erroneous & prejudicial to the interest of the Revenue for the reason that AO has not considered the disallowance of ₹10,38,102/- in respect of interest charges under the head of other expenses which was paid on bogus & unexplained unsecured loans amounting to ₹2,09,00,000/-, which were already added u/s 68 in the impugned assessment order & accordingly, directed AO to modify the assessment by making the addition of ₹10,38,102/-, after affording reasonable opportunity of hearing to Assessee.
Assessee submitted that in the original assessment preceding notice u/s 143(2) was issued , which is not in conformity with the CBDT Instruction F. No. 225/157/2017/ITA-II dt 23-06-2017 & therefore, the assessment framed based on the said invalid notice was also invalid & bad in law. Revisionary order passed u/s 263 was passed revising the assessment framed u/s 143(3) in consequence to invalid notice u/s 143(2) & therefore, the revisionary order passed u/s 263 is itself invalid & bad in law as no invalid assessment order could be revised u/s 263 . Assessee submitted that the he is within its legitimate & lawful rights to challenge the validity of the assessment order in the collateral proceeding, thus requesting the revisionary order to be quashed to be invalid & nullity in the eyes of the law.
