Case Law Details
PCIT Vs Paramount Propbuild Pvt. Ltd. (Delhi High Court)
Delhi High Court held that assessment order passed without making required inquiries or verification is considered as erroneous and prejudicial to the interest of revenue, accordingly, PCIT rightly invoked revisional powers under section 263 of the Income Tax Act.
Facts- The assessee is engaged in the business of real estate development. The case of the assessee was picked up for scrutiny. Post inquiry, AO determined the income of the assessee to be INR 4,55,45,110/-, while making an addition of INR 2,76,610/- u/s. 14A of the Act. CIT(A) partly allowed the appeal of the assessee and restricted the addition made by the AO to the extent of INR 1,37,022/-.
Thereafter, by virtue of the powers vested un/s. 263 of the Act, the PCIT perused the assessment order dated 26 December 2018 and issued a notice to the assessee on 28 March 2021. Consequently, on 31 March 2021, PCIT set aside the assessment order dated 26 December 2018 considering it to be erroneous and prejudicial to the interests of the Revenue and directed the AO to consider the case afresh.
Assailing the order of the PCIT, the assessee preferred an appeal before the ITAT and vide its order dated 14 February 2022, ITAT accepted the contentions of the assessee and set aside the PCIT order dated 31 March 2021. Being aggrieved, revenue as preferred the instant appeal.
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