PROPERTY PLUS REALTORS,DELHI vs. PR, CIT CENTRAL DELHI 2, DELHI

ITA 3406/DEL/2025Status: DisposedITAT Delhi21 January 2026AY 2020-21Bench: SHRI YOGESH KUMAR U.S (Judicial Member), SHRI MANISH AGARWAL (Accountant Member)1 pages
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What did the Tribunal hold?

The Tribunal held that the AO had conducted plausible inquiries and verifications regarding the commission payment to SIPL, and therefore, the assessment order was not erroneous. Consequently, the revisionary order passed by the PCIT under Section 263 was quashed.

What were the facts?

The assessee firm paid substantial commission to a related company, SIPL. The PCIT initiated revision proceedings under Section 263, alleging the commission payment was a tax avoidance scheme and the assessment order was erroneous. The assessee contended that the AO had made proper inquiries and verified the expenditure.

What were the issues?

Whether the PCIT was justified in revising the assessment order under Section 263 when the AO had already conducted sufficient inquiries regarding the commission payment to a related party.

Which sections of the Income-tax Act were involved?

Section 263,Section 143(3),Section 145(3),Section 133(6)

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Income Tax Appellate Tribunal, DELHI “E” BENCH: NEW DELHI

Before: SHRI YOGESH KUMAR U.S & SHRI MANISH AGARWAL

For Appellant: Shri Deepak Kapoor, Adv
For Respondent: Ms. Amisha S. Gupta, CIT DR
Hearing: 25.11.2025Pronounced: 21.01.2026

PER MANISH AGARWAL, AM : The captioned appeals are filed by the assessee against two separate orders, both dated 31.03.2025 of Ld. Principal Commissioner of Income Tax (Central), Delhi-2 [“Ld. PCIT”] passed u/s 263 of the Income Tax Act, 1961 [“the Act”] arising out of two separate assessment orders, dated 18.01.2023 and 24.03.2023 passed u/s 143(3) of the Act pertaining to Assessment Years 2020- 21 & 2021-22 respectively.

2.

The facts in both appeals are similar and identical, therefore, both the appeals filed by the assessee are taken together and decided by a common order for sake of convenience. ITA Nos.3406 & 3407/Del/2025

3.

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