Case Law Details
Polygel Industries Pvt. Ltd. Vs PCIT (ITAT Mumbai)
ITAT Mumbai held that order passed u/s 263 of the Income Tax Act by merely remitting the matter back to AO without giving a finding that profit declared by assessee is erroneous in so far as it is prejudicial to the interest of the revenue is liable to be set-aside.
Facts- The assessee is engaged in the business of manufacturing of adhesive, sealant and construction chemical etc. Return of Income was filed declaring total income of ₹.Nil. The return was processed u/s. 143(1) of the Act and income was assessed at ₹.Nil. Subsequently, the case was selected for scrutiny under Faceless E-Assessment Scheme, 2019. Accordingly, notices u/s. 143(2) and 142(1) of the Act were issued.
The assessment u/s. 143(3) r.w.s. 143(3A) & 143(3B) of the Act was passed assessing total income at ₹.50,67,670/- by making addition of ₹.55,301/- on account of disallowance u/s. 14A of the Act, disallowance of ₹.4,37,499/- u/s. 43B of the Act and disallowance of ₹.45,74,868/- u/s. 36(1)(vii) of the Act.
Pr.CIT while verifying the assessment records observed certain errors in Assessment Order rendering the same as erroneous in so far as it is prejudicial to the interest of the Revenue. Accordingly, he issued notice u/s. 263 of the Act.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
Author Bio
