PCIT Vs S.G. Portfolio Pvt. Ltd. (Delhi High Court)
Delhi High Court, in the case of PCIT Vs S.G. Portfolio Pvt. Ltd., upheld the orders of the Income Tax Appellate Tribunal (ITAT) and the Commissioner of Income Tax (Appeals) [CIT(A)], dismissing the revenue’s appeal. The case arose from a search operation involving Mr. Aseem Kumar Gupta’s group, revealing accommodation entries facilitated through multiple entities. For Assessment Year (AY) 2009-10, the Assessing Officer (AO) had initially assessed the respondent’s income at ₹7.35 crore under Section 143(3) read with Section 153C of the Income Tax Act. However, the CIT(A) quashed this order, citing a lack of incriminating material against the assessee. Subsequently, a reassessment was initiated under Sections 147/148, leading to similar additions. The CIT(A) again annulled the reassessment, noting procedural lapses, including the lack of fresh tangible material, mechanical approval for reassessment, and failure to issue notice under Section 143(2).
The High Court observed that the reassessment lacked any fresh material and was based on the same facts as the first round of assessment. Furthermore, the AO’s assumption of jurisdiction under Section 144, despite the presence of the respondent’s return on record, was deemed erroneous. The Court held that issuing a notice under Section 143(2) was mandatory before proceeding with the assessment. With these findings, the High Court dismissed the revenue’s appeal, concluding that no substantial question of law arose in the matter.
