Case Law Details
Ametek Builtech India Versus Pvt Ltd Vs PCIT (ITAT Delhi)
Introduction: The recent case of Ametek Builtech India Versus Pvt Ltd Vs PCIT (ITAT Delhi) sheds light on the significance of thorough assessments by Assessing Officers (AO). The Income Tax Appellate Tribunal (ITAT) Delhi upheld the Principal Commissioner of Income Tax’s (PCIT) revision order under Section 263 of the Income Tax Act, emphasizing the need for a comprehensive inquiry by the AO. The appeal, dated 17.10.2023, for the assessment year 2015-16, revolves around the acceptance of the Income Tax Return (ITR) without adequate scrutiny.
Detailed Analysis:
Background: The appeal, filed against the order of PCIT-1, New Delhi, dated 16.03.2020, pertains to A.Y. 2015-16. The appellant, Ametek Builtech India Pvt Ltd, raised several grounds challenging the PCIT’s order.
Grounds of Appeal: The appellant argued that the PCIT erred in not recognizing that the company was in its initial stages of business during the concerned assessment year. The loans and advances, sourced through group companies’ bank accounts, were deemed genuine. However, PCIT invoked Section 263, directing a fresh assessment.
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