Dee Are Texfab Pvt Ltd Vs PCIT (ITAT Ahmedabad)
ITAT Ahmedabad held that order of PCIT invoking section 263 of the Income Tax Act set aside as conditions necessary for invoking Section 263 of the Act, i.e., the order being erroneous and prejudicial to the interest of the revenue, are not satisfied.
Facts- The assessee-company filed its return of income for the A.Y. 2014-15 on 05-09-2014 declaring the total income of Rs.11,45,820/-. On the basis of information available with the Department due to the search u/s.132 of the Act conducted on 12-04-2019 in case of Sanjay Govindram Agrawal (also known as Sanjay Tibrewal), the case of assessee was reopened by issuing notice u/s.148 of the Act and after recording reasons for reopening the assessment. During the course of reassessment proceedings, the AO issued notices u/s.142(1) of the Act on 03-09-2021, 24-11-2021, 08-12-2021 and 14-12-2021 asking the assessee to provide required details. The assessee also replied to all these notices.
Considering the information and examining the documents provided by the assessee the NFAC completed the assessment u/s.147 of the Act read with section 144B of the Act.
The PCIT observed that the case of the assessee was reopened on the basis of information of accommodation entries totalling to Rs.1,36,02,120/-from the entry operator Sanjay Govindram Agrawal, but concluded that the AO has not made any addition despite availability of specific information. He further concluded that there is underassessment of the income and issued notice u/s.263 of the Act for revision of the order passed u/s.147 r.w.s 144B of the Act.
