SHAIL GAS PVT LTD,GHAZAIBAD vs. PR.CIT -7, NEW DELHI

ITA 630/DEL/2021Status: DisposedITAT Delhi05 August 2024AY 2015-16Bench: the Tribunal.9 pages
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What did the Tribunal hold?

The Tribunal held that the PCIT's order under Section 263 was bad in law because it went beyond the scope of limited scrutiny, included issues for which no show cause notice was issued, and violated principles of natural justice. The AO had already examined the issues raised.

What were the facts?

The assessee's case was selected for limited scrutiny. The PCIT invoked Section 263 to revise the assessment order, raising issues beyond the original scrutiny scope and without proper opportunity. The PCIT directed the AO to re-examine issues related to investment valuation and long-term loans.

What were the issues?

Whether the PCIT can invoke Section 263 to revise an assessment order on issues beyond the scope of limited scrutiny and without providing adequate opportunity to the assessee.

Which sections of the Income-tax Act were involved?

Section 263,Section 14A,Section 56(2)(viia),Section 143(3),Section 133(6)

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Income Tax Appellate Tribunal, DELHI BENCH ‘H’,

Before: Dr. B. R. R. Kumar, Sh. Sudhir Kumar

For Appellant: Adv. &
For Respondent: Ms. Sapna Bhatia, CIT-DR
Hearing: 25.07.2024Pronounced: 05.08.2024

Per Dr. B. R. R. Kumar, Accountant Member:

The present appeal has been filed by the assessee against the order of ld. PCIT, Delhi-7 dated 31.03.2021. 2. Following grounds have been raised by the assessee:

“1. Because the Ld. Pr. CIT erred in law and on facts in invoking the provisions of Sec. 263 of the Income-tax Act, 1961 and issued notice on 24/03/2021, assuming juri iction illegally without satisfying the mandatory juri ictional conditions as per law, and therefore the initiation of proceedings u/s 263 of the Act, is grossly illegal, arbitrary, without application of mind, without juri iction, and bad in law, and thus the entire re

The order continues below.

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