Loading judgment…
Facts
The assessee filed an appeal against the PCIT's order dated 31.03.2024, initiated under section 263 of the Income-tax Act, 1961 for AY 2017-18. The PCIT had initiated revision proceedings against an assessment made under sections 153C read with 144, which assessed the assessee's gross profit at 2% of unaccounted cash purchases, deeming it erroneous and prejudicial to revenue. The assessee did not appear for the hearing, and proceedings were conducted ex-parte.
Held
The Tribunal noted that the PCIT had already 'dropped' the section 263 proceedings because the Assessing Officer had taken recourse to section 148 reopening proceedings. Consequently, the assessee lacked valid locus standi to be aggrieved by the PCIT's impugned order under these peculiar circumstances. The appeal was therefore dismissed.
Key Issues
Whether the assessee had locus standi to challenge the PCIT's order under Section 263 when the PCIT had already dropped the revision proceedings due to recourse to Section 148 by the Assessing Officer.
Sections Cited
Section 263 of the Income-tax Act, 1961, Section 153C of the Income-tax Act, 1961, Section 144 of the Income-tax Act, 1961, Section 148 of the Income-tax Act, 1961
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH: ‘E’ NEW DELHI
Before: SHRI SATBEER SINGH GODARA & SHRI M. BALAGANESH
PER SATBEER SINGH GODARA, JM
This assessee’s appeal for assessment year 2017-18, arises against the Principal Commissioner of Income Tax (Central), [in short, the “PCIT”], Meerut’s DIN & Order No. ITBA/COM/F/17/2023-24/1063761088(1), dated 31.03.2024, involving proceedings under section 263 of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’).
Case called twice. None appears at the behest of the assessee. We accordingly proceeded ex-parte against him.
Learned CIT(DR) vehemently argues during the course of hearing that the PCIT(Central), Kanpur at Meerut herein has rightly assumed his section 263 revision jurisdiction terming the Assessing Officer’s corresponding section 153C read with section 144 assessment dated 30th December, 2021 assessing the assessee’s gross profit @ 2% of the total unaccounted purchases made in cash as an erroneous one causing prejudice to interest of the Revenue and therefore, we ought to uphold the same. 4. We have given our thoughtful consideration to the assessee’s pleadings and Revenue’s foregoing vehement contentions. It emerges from a perusal of the PCIT’s impugned revision discussion in para 7 that he has already “dropped” section 263 proceedings keeping in mind the fact that the Assessing Officer had taken recourse to section 148 reopening proceedings. 5. Faced with this situation, we are of the considered view that the assessee could hardly be held to be having any valid locus standi to get aggrieved against the PCIT’s impugned order in these peculiar circumstances. Rejected accordingly.
2 | P a g e
This assessee’s appeal is dismissed in above terms. Order pronounced in the open court on 2nd December, 2024 Sd/- Sd/- (M. BALAGANESH) (SATBEER SINGH GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 2nd December, 2024. RK/- Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(A) 5. DR Asst. Registrar, ITAT, New Delhi
3 | P a g e