Surya Roshni Limited Vs PCIT (ITAT Delhi)
ITAT Delhi held that revisionary proceedings under section 263 of the Income Tax Act is not justifiable since proper enquiry and examination was made and therefore, there is no error in the order of the AO thus, it is not pre-judicial to the interest of the Revenue.
Facts- The assessee is engaged in the business of manufacturing of steel tubes, pipes, cold rolled strips, different variety of lamps and allied items and the assessment was completed u/s 143(3) vide order dated 09.12.2016 on return of income. During the year under appeal, in terms of the order of National Law Tribunal, Chandigarh dated 11.12.2017, the company Surya Global Steel Tubes Ltd. was merged with Surya Roshni Ltd.
As a result of the merger with the assessee company, the proceedings u/s 147 of the Act in the case of assessee company were initiated on the basis of the information that M/s. Surya Global Steel Tubes Ltd. had received share capital and unsecured loans from various companies which includes Diwakar Marketing Pvt. Ltd. from whom the share capital was received and Rackson Motors Pvt. Ltd. from whom loan was received which as per the public domain, it is found that these are shell companies and therefore, the amount received from this company was held as concealed income. Accordingly, the case of the assessee was re-opened by issue of notice u/s 148 of the Act. The re-assessment order was passed u/s 147/143(3) of the Act on 11.03.2022 wherein income declared and assessed u/s 143(3) was accepted and no addition was made.
