SHIVKRIPA MARKETING PVT. LTD.,KOLKATA vs. ITO, WARD-7(1), KOLKATA

The present appeal has been preferred by the assessee against the order dated 08.11.2021 of the Principal Commissioner of Income Tax [hereinafter referred to as ‘PCIT’]. The assessee is aggrieved by the action of the PCIT in exercising his revision jurisdiction u/s 263 of the Income Tax Act (hereinafter referred to as the ‘Act’) and thereby setting aside the assessment order for de novo assessment.

No one has put in appearance on behalf of the assessee despite notice, therefore, we proceed to decide this appeal after hearing the ld. DR and after going through the records. 3. The brief facts relating to the issue are that the ld. PCIT noted from the record that in this case there was Nil opening stock and further the purchases were amounting to Rs.2,57,09,500/- and the sales were at Rs.66,48,155/- and the assessee had shown closing stock of Rs.1,68,51,740/-, whereas, the same should have been at Rs.1,90,61,345/-. In reply to the show-cause notice, the assessee furnished details of the account and had shown from the record that during the year that there was loss of Rs.2209605/- which after taking into consideration there was no mismatch in figure. However, the PCIT being Assessment Year: 2017-18 Shivkripa Marketing Pvt. Ltd satisfied with this issue, took up another issue that there was no income from the sale of Sarees without pointing out any defect in the accounts of the assessee. It seems that the ld. PCIT, in a casual manner, had exercised his revision jurisdiction on one ground and set aside the assessment at some other ground even without giving any opportunity to the assessee on the second ground, which otherwise is also a very vague ground without application of mind. In view of this, there is no merit in the impugned order of the ld. PCIT and the same is set aside.