Daffodills Pharmaceuticals Ltd. Vs PCIT (ITAT Delhi)
The assessee appealed against the order of the Principal Commissioner of Income Tax passed under Section 263 of the Income-tax Act, 1961 dated 29.03.2022 for Assessment Year 2012-13. The revision order set aside the reassessment completed under Sections 143(3) read with 147 on 29.12.2019 and directed the Assessing Officer to frame the assessment afresh after making further enquiries, including obtaining inputs from the CBI.
The reassessment had originally been completed by accepting the returned income of ₹40,87,730. Subsequently, the Principal CIT examined the assessment records and issued a show cause notice under Section 263 stating that the Assessing Officer had failed to examine various matters, including information received from the Investigation Wing regarding the assessee’s alleged involvement in the NRHM scam, commission payments, applicability of Section 40A(2)(b), contradictory information furnished during assessment proceedings, and depreciation claimed on a residential flat. The Principal CIT also referred to investigation reports, alleged differences of ₹12,98,24,582 between turnover and bank credits, allegations relating to bogus expenses, commission payments, and materials arising from CBI investigations. The Principal CIT further relied upon judgments of the Allahabad High Court relating to proceedings against the assessee and its directors in connection with the NRHM scam and concluded that the reassessment order suffered from lack of enquiry and was erroneous and prejudicial to the interests of the Revenue.
