SMT. SIMRANJEET SINGH,AGRA vs. PR.CIT., AGRA

This assessee’s appeal for assessment year 2016-17 arises against Pr. Commissioner of Income Tax(Appeals)/National Faceless Appeal Centre [in short, the “PCIT(A)/NFAC”], Agra’s DIN and Order No. ITBA/REV/F/REV5/2020-21/1032054336(1) dated 31.03.2021, in proceedings u/s 143(3) of the Income-tax Act, 1961, hereinafter referred to as the ‘Act’.

Heard both the parties at length. Case file perused.

It emerges during the course of hearing that the PCIT’s revision directions herein have termed the Assessing Officer’s regular assessment dated 10.012.2018 as an erroneous one causing prejudice to interest of Revenue on account of his alleged failure in having not examined assessee’s credit entries involving in aggregate amount of Rs.3,32,33,625/- which involved three related parties namely Sh. Manjeet Singh, Sh. Paramjeet Singh an Sh. Surjeet Singh etc.

There would be hardly any dispute between the parties that not only the Assessing Officer had called for the assessee’s explanation qua the said entries by way of section 142(1) notice during the course of assessment but also before the PCIT he had duly explained source of all these entries coming from banking channel involving all the above family members who are stated to be assessed in the very jurisdiction.

That being the case, we are of the considered view the Ld. PCIT’s impugned revision directions have erred in law and on facts and in holding the impugned assessment as attracting Section 263 jurisdiction. The same stand reversed therefore in these peculiar facts and circumstances.