Case Law Details
Shhlok Triton Associates Vs PCIT (ITAT Surat)
ITAT Surat held that revisionary order passed by PCIT under section 263 of the Income Tax Act without providing adequate opportunity to the assessee to file relevant material evidences and documents before him is liable to be remanded back for fresh consideration of the matter.
Facts- Scrutiny assessment of the assessee firm u/s 143(3) of the Act was finalized on 09.12.2016 accepting the returned income shown by the assessee firm.
Later on, Ld. PCIT exercised his jurisdiction u/s 263 of the Act. On perusal of the scrutiny records, it was observed by ld PCIT that one of the reasons for selection of case under scrutiny was unsecured loans from the persons who have not filed their returns of income. During the year under consideration the assessee firm had obtained unsecured loans from the various parties.
It was noticed by ld PCIT that assessee-firm during the course of assessment proceedings had not furnished required documents and details and non-furnishing of requisite details and corroborative evidences indicates that the loan of Rs.77,00,000/- as above obtained from the above tabulated three parties cannot be considered as genuine. AO has not examined the genuineness of the loan transaction. Therefore, ld.PCIT issued a notice u/s 263 of the Act to the assessee. PCIT rejected the contention of the assessee and observed that assessment order passed u/s 143(3) of the Act for A.Y. 20 14-15 on 30.11.2016 is erroneous and prejudicial to the interest of revenue and therefore ld PCIT directed AO to recompute and determine the correct total income of the assessee-firm after making necessary disallowances of wrong claims made by the assessee-firm. Therefore, the assessment order u/s 143(3) was set-aside by ld PCIT with the direction to Assessing Officer to frame the assessment de novo.
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