MADANMOHANLAL G. ARORA,MUMBAI vs. PR CIT-17, MUMBAI

ITA 514/MUM/2021Status: DisposedITAT Mumbai28 February 20229 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal upheld the PCIT's power to revise the assessment order under Section 263, finding the AO's order to be erroneous and prejudicial to revenue due to lack of proper inquiry. However, it directed the AO to determine the correct addition for bogus purchases after verification.

What were the facts?

The Assessing Officer (AO) reopened the assessment of the assessee for AY 2010-11 based on information regarding bogus purchases. The AO made an addition of 12.5% of the alleged bogus purchases. The Principal Commissioner (PCIT) invoked Section 263, considering the AO's order erroneous and prejudicial to revenue for not examining the entire bogus purchases.

What were the issues?

Whether the PCIT correctly invoked Section 263 when the AO had made an addition, and whether the AO's assessment order was erroneous and prejudicial to the interest of revenue due to insufficient inquiry into bogus purchases.

Which sections of the Income-tax Act were involved?

Section 263,Section 147,Section 144,Section 142(1),Section 148

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Cases cited in this judgment(2)Show list

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Income Tax Appellate Tribunal, “B” BENCH, MUMBAI

Before: SHRI KULDIP SINGH & SHRI AMARJIT SINGH

For Appellant: Shri Ashok Mehta
For Respondent: Shri Mahesh Akhade
Hearing: 13.01.2022Pronounced: 28.02.2022

PER AMARJIT SINGH, AM:

The present filed by the assessee is directed against the order passed by the PCIT, Mumbai-17, which in turn arises from the assessment order passed by the A.O u/s 144 r.w.s 147 of the Income Tax Act, 1961, dated 11.12.2017 for A.Y. 2010-11. The assessee has assailed the impugned order on the following grounds before us:

“(1) The learned Principal Commissioner of Income Tax, Mumbai-17 erred in passing an order u/s 263 without juri iction and ITA No.514/Mum/2021 A.Y. 2010-11 2 Madanmohanl

The order continues below.

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