Alka Agarwal Vs PCIT (ITAT Delhi)
Assessee’s case was originally reopened u/s 148 on allegations of bogus accommodation entries & penny stock gains. Subsequently, pursuant to search in Alankit Group, proceedings were initiated u/s 153C and reassessment u/s 148 stood abated. AO completed assessment u/s 153C after obtaining statutory approval u/s 153D from Addl. CIT and made additions on account of alleged bogus LTCG, cash payments for property and commission income.
PCIT invoked revisionary jurisdiction u/s 263 on the ground that issues for which reopening u/s 148 was initiated were not properly examined in assessment u/s 153C and held the assessment order to be erroneous & prejudicial to Revenue.
ITAT quashed the 263 order. Tribunal held that once an assessment is completed u/s 153C after due statutory approval u/s 153D, PCIT cannot invoke section 263 without first holding such approval itself to be erroneous and prejudicial to Revenue. Approval u/s 153D is not a mere administrative formality but a statutory safeguard integral to assessment proceedings. In absence of any finding that the approval granted by Addl. CIT was vitiated or invalid, PCIT lacked jurisdiction to revise the assessment order. Following coordinate bench decisions and HC rulings, ITAT held the revision u/s 263 to be bad in law and quashed the same. Appeal allowed.
FULL TEXT OF THE ORDER OF ITAT DELHI
