Case Law Details
Ashish Gupta Vs PCIT (ITAT Delhi)
ITAT Delhi held that order of the ld. PCIT passed in haste without verification of factual material, as amount alleged was in Crores as against actual transactions in Lakhs, is unsustainable.
Facts- In the present case, the ld. PCIT, Central-2 issued show cause as per the provisions of Section 263 of the Income Tax Act, 1961 to the assessee on 28.03.2018 (Wednesday) and passed the order on 31.03.2018 (Saturday). The ld. PCIT assumed that the Assessing Officer completed the assessment without proper examination and verification of transactions of the assessee with regard to M/s Aerens Projects & Infrastructure Pvt. Ltd. for applicability of provisions of Section 2(22)(e) of the Act.
Conclusion- Held that the ld. PCIT given just two days time to the assessee to reply to the show cause. The basic tenets of principle of natural justice have not be adhered to. Further, the amount alleged by the ld. PCIT was Rs.3.16 Cr. against the actual transactions of Rs.21.90 lacs which reflects that the ld. PCIT has not examined the issue properly. Hence, we hold that the order of the ld. PCIT was passed in haste without verification of the factual material and hence the same cannot be sustained.
FULL TEXT OF THE ORDER OF ITAT DELHI
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