GOLD STAR DIAMOND PRIVATE LIMITED,MUMBAI vs. PRINCIPAL COMMISSIONER OF INCOME TAX - 5, MUMBAI

ITA 2965/MUM/2018Status: DisposedITAT Mumbai25 November 2022AY 2013-1416 pages
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What did the Tribunal hold?

The Tribunal held that the AO had made a possible view after considering the material on record, including corresponding sales and evidence of payments. Therefore, the PCIT's revisionary jurisdiction was invalidly exercised.

What were the facts?

The assessee's case was reopened due to information about accommodation entries from the Bhanwarlal Jain group. The Assessing Officer (AO) made an addition based on estimated profit from bogus purchases, but the Principal Commissioner of Income Tax (PCIT) invoked revisionary powers, deeming the assessment order erroneous and prejudicial to revenue.

What were the issues?

Whether the PCIT correctly invoked revisionary powers under Section 263 when the AO had taken a possible view after due inquiry, and if the assessment order was indeed erroneous and prejudicial to revenue.

Which sections of the Income-tax Act were involved?

Section 263,Section 143(3),Section 147

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Cases cited in this judgment(4)Show list

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Income Tax Appellate Tribunal, “G” BENCH, MUMBAI

Before: SHRI PAVAN KUMAR GADALE & SHRI AMARJIT SINGH

Hearing: 27.09.2022Pronounced: 25.11.2022

Per Amarjit Singh (AM): These two appeals filed by the assessee are directed against the order of ld. Pr.CIT passed u/s 263 of the Act. Since both the appeals are passed on similar facts on identical issue, therefore, these appeals are adjudicated together by taking the ITA No. 2964/Mum/2018 as a lead case and its findings will be applied mutatis mutandis to other appeal. The assessee has raised the following grounds:

ITA Nos. 2964 & 2695/Mum/2018 2 M/s

The order continues below.

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