Neelkanth Quarry Works LLP Vs PCIT (ITAT Surat)
ITAT Surat held that if the order passed in the original proceeding itself is illegal, then that cannot give rise to valid revision proceedings. Thus, revision order u/s. 263 quashed as order passed u/s. 147 r.w.s. 144 & 144B is invalid.
Facts- The assessee is a Limited Liability Partnership Firm (in short, ‘LLP’). The date of incorporation of LLP was 22.06.2016. The LLP agreement was entered into by three partners namely, Mr. Pratapsingh Ranjitsing Rajput, Mr. Shailendrasingh Pratapsingh Rajput and Mrs. Shwetasingh S. Rajput. M/s Shree Nilkanth Quaryy Works (partnership firm) was converted into LLP on 04.07.2016.
Information was received by the AO that the above firm had transactions of Rs.1,55,55,450/- with M/s Maruti Enterprises, which was providing accommodation entries during the year under consideration. As the partnership firm was converted into LLP with the same name with all assets and liabilities of the erstwhile firm with a new PAN, proceeding u/s 147 of the Act was initiated against the assessee LLP with prior approval of the competent authority u/s 151 of the Act. Since it was not possible in faceless scheme, the AO assessed u/s 147 r.w.s. 144 & 144B of the Act at Rs. ‘Nil’ income without making any addition.
