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Facts
The assessee, Nawla Ispat Pvt. Ltd., appealed against an order dated 03.10.2017 passed under Section 263 of the Income-Tax Act, 1961, which originated from an assessment order dated 25.05.2016 under Section 143(3) for AY 2014-15. The revisionary authorities invoked Section 263, contending the Assessing Officer lacked pecuniary jurisdiction and failed to issue Section 133(6) notices for sundry creditors, disallowing certain expenses without basis.
Held
The Tribunal noted the assessee's non-appearance despite previous dismissal and restoration of the appeal. It held that the grounds challenging the justification of recourse to Section 263 by the revisionary authorities lacked substance. Consequently, the appeal was dismissed.
Key Issues
Whether the invocation of Section 263 by the revisionary authorities was justified, considering the Assessing Officer's pecuniary jurisdiction and the non-issuance of Section 133(6) notices for sundry creditors.
Sections Cited
263, 143(3), 133(6)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH: ‘E’ NEW DELHI
Before: SHRI G.S. PANNU, VICE- & SHRI ANUBHAV SHARMA
PER ANUBHAV SHARMA: JUDICIAL MEMBER: Assessee has filed the appeal against the order dated 03.10.2017 under Section 263 of the Income-Tax Act, 1961 (hereinafter referred “the Act” ) passed by the learned Principal
2 Commissioner of Income-Tax (Appeals), Meerut in an appeal before him arising out of assessment order dated 25.05.2016 passed by the ITO, Ward-2(1), Meerut (hereinafter referred as “the A.O. or in short “AO”) under Section 143(3) of the Act for assessment year 2014-15. 2. Heard and perused the record.
At the time of hearing, none appeared for and on behalf of the assessee and record shows ever since institution of appeal, repeated notices being issued. Earlier by order dated 20.08.2018, the appeal was dismissed in default for non-prosecution and it appears thereafter it was restored vide MA No.68/Del/2018. No further opportunity of notice is justified as at the time of recall on 23.03.2018, the Bench had ordered that the appeal shall be listed on out of turn basis on 16.50.2018 and there shall be no separate notice for the same.
Learned Departmental Representative was heard who has supported the orders of the tax authorities below.
On perusal of the record, it comes up that learned revisionary authorities had examined the assessment record and observed that the Assessing Officer, in fact, did not have pecuniary juri iction. Further the revisionary authorities have examined the fact that with regard to 3 outstanding sundry creditors, notices were not issued to certain creditors at all under Section 133(6) of the Act and also without any reasonable basis, certain expenses were disallowed.
In appeal before us, by way of grounds or otherwise, is it not established that if at all any on that aspect was made so as to not justified the recourse to section 263 of the Act by the revisionary authorities. The grounds have no substance. The appeal is dismissed.
In the result, the appeal is dismissed. Order pronounced in the open court on 10/06/2024. (G.S. PANNU) ( ANUBHAV SHARMA) VICE-PRESIDENT JUDICIAL MEMBER Dated: 10th June, 2024. Mohan Lal