PCIT v. M/s SNG Developers Limited

Gm Overseas, New Delhi vs. ACIT Circle-48(1), New Delhi

In the result, the appeal filed by the assessee is allowed

…valid. Relying on the following decisions, he submitted that incorrect quantification of income in the reason can be a valid ground for quashing of reassessment proceedings:- (i) Shamshad Khan vs ACIT 395 ITR 265 (Del); (ii) Pr CIT vs M/s SNG Developers Ltd, 404 ITR 312 (Del); (iii) CIT vs Suren International Pvt Ltd., 357 ITR 24 (Del); (iv) Pr. CIT vs. RMG Polyvinyl (I) Ltd (2017) 396 ITR 5 (Del); (v) CIT vs. Atlas Cycle industries (1989) 180 ITR 319 (P&H); (vi) Siemens Information System Ltd., vs. ACIT & Others (2007) 293 ITR 548 (Bom.); (vii) Ankita A. Choksey vs. Income Tax Officer And Others (2019) 411 ITR…

Vijayshree Food Products P.Ltd, New Delhi vs. ACIT, Central Circle-30, New Delhi

In the result, both these appeals are partly allowed

Bench: Shri R.K. Panda & Ms Suchitra Kambleassessment Year: 2014-15 Vijayshree Food Products P. Ltd., Vs. Acit, C/O Ravi Gupta, Advocate, Central Circle-30, E-6A, Kailash Colony, New Delhi. New Delhi. Pan: Aaccv4721C (Appellant) (Respondent) Assessee By : Shri P.C. Yadav, Advocate Revenue By : Shri Prakash Dubey, Sr.Dr Date Of Hearing : 09.09.2021 Date Of Pronouncement : 06.12.2021 Order Per R.K. Panda, Am: This Appeal Filed By The Assessee Is Directed Against The Order Dated 28Th December, 2018 Of The Cit(A)-30, New Delhi, Relating To Assessment Year 2014-15. 2. Facts Of The Case, In Brief, Are That The Assessee Is A Company Engaged In The Business Of Manufacturing & Export Of Tobacco Products. It Filed Its Return Of Income On 30Th September, 2014 Declaring The Loss Of Rs.18,78,467/-. The Return Was Processed U/S 143(1) Of The Act On 26Th November, 2014 At The Returned Income. Subsequently, The Ao Reopened The Assessment As Per The Provisions Of Section 147 Of The Act By Recording The Following Reasons:-

…Referring to the following decisions, he submitted that if the AO mentioned wrong facts which are contrary to the records, then assumption of jurisdiction is bad in law:- i. CIT Vs. Atlas Cycle Industries 180 ITR 319( P&H) ii. Pr. CIT Vs. SNG Developers Ltd. 404 ITR 312(Del) iii. Shamshad Khan vs. ACIT 395 ITR 265;(Del) iv. Siemens Information System Ltd. Vs. ACIT 293 ITR 548.(Bom) v. CIT Vs Rainee Singh 330 ITR 417(Del) vi. VSR Enterprises- ITA No 1856/Del/2016- dated 17.02.2021. vii. Shri Natrajan Monie- ITA NO 1817/Del/2017- dated-07.12.2020. viii. SJM international in ITA No-3762/Del/2018 dated 09.08.2021 8…

ACIT, New Delhi vs. M/S. Maharaji Education Trust, Ghaziabad

The appeal are dismissed

Bench: Shri Kuldip Singh & Shri Prashant Maharishi(Through Video Conferencing)

…lear the reopening is based on incorrect facts, reliance is placed on following decisions: i. M/s Synfonia Tradelinks P Ltd vs ITO W.P.(C) No.12544/2018 dt: 26.03.2021 (Del); ii. Shamshad Khan vs ACIT 395 ITR 265 (Del); iii. Pr CIT vs M/S SNG Developers Ltd 404 ITR 312 (Del) approved by Hon’ble Apex Court by dismissing SLP of revenue in SLP © 42379/2017 Dt: 09.02.2018; iv. CIT vs Suren International Pvt Ltd 357 ITR 24 (Del); v. Pr. CIT vs. RMG Polyvinyl (I) Ltd (2017) 396 ITR 5 (Del), vi. CIT vs., Atlas Cycle industries (1989) 180 ITR 319 (P&H); vii. Siemens Information System Ltd., vs. ACIT & Others (2007…

Naveen Infradevelopers & Engineers Pvt Ltd, New Delhi vs. DCIT Circle-17(2), New Delhi

In the result, appeal filed by the assessee is partly allowed

Bench: Shri Amit Shukla & Shri Prashant Maharishi(Through Video Conferencing) Naveen Infradevelopers & Vs. Dcit, Engineers Pvt. Ltd, Circle-17(2), Sardar Patel Marg, New Delhi Diplomatic Enclave, New Delhi Pan: Aadcn2121M (Appellant) (Respondent)

…mitted that even if the case of the assessee falls under the original assessment u/s 143 (1) of the act, the assessing officer must have a tangible material to reopen the case. For this proposition, he relied on the decision of Pr CIT V SNG Developers Limited 404 ITR 312[Delhi]. 10. On the merits of the case, he submitted that the assessee has furnished the complete details of the lender and all layers of the investments which have resulted into the loan in the books of the assessee company has been disclosed with evidences such as the confirmation, the balance sheets, income tax returns, Assessment orders, there…

M/S Shri Shyam Sunder Infrastructure (P) Ltd., Delhi vs. ITO, New Delhi

In the result, appeal of the Assessee allowed

Bench: Shri Bhavnesh Saini & Shri N.K. Billaiya

…xim (P) Ltd., and then as Mamram Developers P. Ltd.,] Delhi. found to exist, and, therefore, the Income-tax Officer did not get jurisdiction to make the reassessment.” 7.1. The Hon’ble Delhi High Court in the case of Pr. CIT vs., SNG Developers Ltd., [2018] 404 ITR 312 (Del.) in which it was held as under : “Held, dismissing the appeal, that the reasons recorded by the Assessing Officer for reopening the assessment under section 147, issuing a notice under section 148 did not meet the statutory conditions. As already held by the Appellate Tribunal, there was a repetition of at least five accommodation entries…

M/S vs. R Enterprises, New Delhi

In the result, appeal of the Assessee allowed

Bench: Shri R.K. Panda & Shri Sudhanshu Srivastavaassessment Year : 2007-08

…grounds on which the reassessment notice was issued were not found to exist, and, therefore, the Income-tax Officer did not get jurisdiction to make the reassessment.” 6.3. The Hon’ble Delhi High Court in the case of Pr. CIT vs., SNG Developers Ltd., [2018] 404 ITR 312 (Del.) in which it was held as under : “Held, dismissing the appeal, that the reasons recorded by the Assessing Officer for reopening the assessment under section 13 147, issuing a notice under section 148 did not meet the statutory conditions. As already held by the Appellate Tribunal, there was a repetition of at least five accommodation entri…

Spj Hotels Pvt. Ltd., New Delhi vs. ITO Ward-24(2), New Delhi

Bench: Shri N. K. Billaiya, S. M. C.

…ision of Delhi High Court in the case of Atul Kumar Swamy 362 ITR 693, Consulting Engineers Services India Pvt. Ltd., 378 ITR 318, Nestle India Ltd., 384 ITR 334 and Priyadesh Gupta 385 ITR 452. The Hon’ble Delhi High Court in the case of SNG Developers Ltd., 404 ITR 312 held that when A.O. initiated the ITA. 69/Del/2020. re-assessment proceedings without application of mind, such proceedings would be invalid. A.O. in the present case has failed to verify the information received from Investigation Wing. Therefore, it is non-application of mind on the part of the A.O. to record correct facts in the reasons for re…

Mikado Realtors (P) Ltd, New Delhi vs. Pr. CIT (Central), Gurugram

In the result, the appeal of the assessee is allowed

Bench: Shri Amit Shukla & Shri O.P. Kant

…ision of Delhi High Court in the case of Atul Kumar Swamy 362 ITR 693, Consulting Engineers Services India Pvt. Ltd., 378 ITR 318, Nestle India Ltd., 384 ITR 334 and Priyadesh Gupta 385 ITR 452. The Hon’ble Delhi High Court in the case of SNG Developers Ltd., 404 ITR 312 held that when A.O. initiated the re-assessment proceedings without application of mind, such proceedings would be invalid. A.O. in the present case has failed to verify the information received from Investigation Wing. Therefore, it is non application of mind on the part of the A.O. to record correct facts in the reasons for reopening of the ass…

Sungrow Impex Private Limited, New Delhi vs. ITO Ward-24(3), New Delhi

In the result appeal of assessee allowed

Bench: Shri Bhavnesh Saini & Shri N.K. Billaiya

…14.1 Ld. Counsel for assessee in support of the above contention also relied upon following decisions: 31 ITA.No.4183/Del./2019 M/s. Sungrow Impex Private Limited, New Delhi. 1. Shamshad Khan vs. ACIT 395 ITR 265 (Del.) 2. Pr. CIT vs. M/s SNG Developers Ltd. 404 ITR 312 (Del.). 3. CIT vs. Atlas Cycle Industries 180 ITR 319(P&H) 4. Siemens Information System Ltd. vs. ACIT 293 ITR 548 (Bom.). 15. On the other hand, Ld. DR relied upon the orders of the authorities below and submitted that since the assessee did not disclose bank account so AO applied his mind to the information received from Investigation Wing. Ex…

Savita Holdings Pvt. Ltd., Delhi vs. ITO, Ward- 22(4), New Delhi

Bench: Shri Bhavnesh Saini & Shri B.R.R Kumar

…ubmitted that since incorrect and wrong facts are recorded in the reopening of the assessment, therefore, it is invalid and bad in law. In support of his contention, he has relied upon the judgment of Delhi High Court in the case of M/s SNG Developers Ltd., 404 ITR 312 (Del.) in which departmental SLP has been dismissed by the Supreme Court vide order dated 09.02.2018. He has also relied upon the judgment of Delhi 12 ITA.No.1389/Del./2019 High Court in the case of Shamshad Khan 395 ITR 265 (Del.), judgment of (P&H) in the case of Atlas Cycle Industries 180 ITR 319 and judgment of Bombay High Court in the…

Raman Sood, New Delhi vs. ITO Ward-28(4), New Delhi

The appeal of the assessee stands allowed

…‘reason to believe’ that income has escaped assessment must be based on correct facts. Notice based on wrong facts is without jurisdiction and is liable to be quashed. The Hon’ble Delhi High Court in the case of PCIT vs. M/s SNG Developers Ltd., reported in 404 ITR 312 has held that condition precedent for issue of notice for re- assessment is that the ‘reason to believe’ that income has escaped assessment must be based on correct facts. Notice based on wrong Raman Sood vs. ITO facts is without jurisdiction and has to be quashed. This order of the Hon’ble Delhi High was challenged before the Hon’ble Apex…

Karan Khurana, Delhi vs. ITO, Ward- 48(2), New Delhi

In the result, the appeal of assessee is allowed

Bench: Shri Bhavnesh Saini & Shri B.R.R Kumar

…opening of the assessment. Resultantly, all additions stand deleted.” 14.1 Ld. Counsel for assessee in support of the above contention also relied upon following decisions: 1. Shamshad Khan vs. ACIT 395 ITR 265 (Del.) 2. Pr. CIT vs. M/s SNG Developers Ltd. 404 ITR 312 (Del.). 3. CIT vs. Atlas Cycle Industries 180 ITR 319(P&H) 4. Siemens Information System Ltd. vs. ACIT 293 ITR 548 (Bom.). 15. On the other hand, Ld. DR relied upon the orders of the authorities below and submitted that since the assessee did not disclose bank account so AO applied his mind to the information received from Investigation Wing. Ex…

Bishan Sharup Gupta, Delhi vs. ITO, Ward- 45(4), New Delhi

In the result, appeal of the Assessee allowed

Bench: Shri Bhavnesh Saini & Shri O.P. Kant

…grounds on which the reassessment notice was issued were not found to exist, and, therefore, the Income-tax Officer did not get jurisdiction to make the reassessment.” 6.3. The Hon’ble Delhi High Court in the case of Pr. CIT vs., SNG Developers Ltd., [2018] 404 ITR 312 (Del.) in which it was held as under : “Held, dismissing the appeal, that the reasons recorded by the Assessing Officer for reopening the assessment under section 147, issuing a notice 18 ITA.No.8083/Del./2019 Shri Bishan Sharup Gupta, New Delhi. under section 148 did not meet the statutory conditions. As already held by the Appellate Tribunal,…

M/S vs. R Enterprises, New Delhi

In the result, appeal of the Assessee allowed

Bench: Shri Bhavnesh Saini & Shri B.R.R. Kumar

…grounds on which the reassessment notice was issued were not found to exist, and, therefore, the Income-tax Officer did not get jurisdiction to make the reassessment.” 6.3. The Hon’ble Delhi High Court in the case of Pr. CIT vs., SNG Developers Ltd., [2018] 404 ITR 312 (Del.) in which it was held as under : “Held, dismissing the appeal, that the reasons recorded by the Assessing Officer for reopening the assessment under section 147, issuing a notice under section 148 did not meet the statutory conditions. As already held by the Appellate Tribunal, there was a repetition of at least five accommodation entries…

Anita Chaudhary, Muzaffarnagar vs. ITO, Ward-2(5), Khatuli

In the result, appeal of assessee is allowed

Bench: Shri Bhavnesh Saini & Shri Prashant Maharishi

…Law. We are fortified in our view by the Judgments of the Hon’ble Punjab & Haryana High Court in the case of CIT vs., Atlas Cycle Industries [1989] 180 ITR 319 [P&H], Judgment of Hon’ble Delhi High Court in the case of Pr. CIT vs., SNG Developers Ltd., [2018] 404 ITR 312 (Del.), Judgment of Hon’ble Delhi High Court in the case of Shamshad Khan vs., ACIT [2017] 395 ITR 265 (Del.) and Judgment of Hon’ble Bombay High Court in the case of Siemens Information Systems Ltd., vs., ACIT & Others [2007] 293 ITR 548 [Bom.]. It may also be noted here that though A.O. has referred to the commission earned by the assessee in a…

R.S. Shares & Securities Ltd., New Delhi vs. ITO, Ward- 20(4), New Delhi

In the result, the appeal of assessee is allowed

Bench: Shri Bhavnesh Saini

…t be justified. In support of above findings, I rely upon following decisions: 1. Judgment of Punjab & Haryana High Court in the case of CIT Vs. Atlas Cycle Industries 180 ITR 319; 2. Judgment of Delhi High Court in the case of Pr. CIT Vs. SNG Developers Ltd. 404 ITR 312; 3. Judgment of Delhi High Court in the case of Shamshad Khan vs. ACIT 395 ITR 265; 4. Judgment of Bombay High Court in the case of Siemens Information System Ltd. Vs. ACIT 293 ITR 548. The crux of the above judgments have been that in case incorrect, wrong and non existing reasons are recorded by the 22 ITA.No.8031/Del./2018 AO for reopening of…

Madhu Apartment Pvt. Ltd., Delhi vs. ITO, Ward- 16(1), New Delhi

In the result, appeal of the Assessee allowed

Bench: Shri Bhavnesh Saini & Shri B.R.R. Kumar

…e based on correct facts. Notice based on wrong facts is without jurisdiction and is to 18 ITA.Nos.3869 & 3870/Del./2018 M/s. Madhu Apartment Private Limited, Delhi. be quashed. The Hon’ble Delhi High Court in the case of PCIT vs. M/s SNG Developers Limited, 404 ITR 312, has held that condition precedent for issue of notice for reassessment is that the reason to believe that income has escaped assessment must be based on correct facts. Notice based on wrong facts is without jurisdiction and has to be quashed. The above decision of the Hon’ble High Court was challenged by the Revenue before the apex court and the…

Madhu Apartment Pvt. Ltd., Delhi vs. ITO, Ward- 16(1), New Delhi

In the result, appeal of the Assessee allowed

Bench: Shri Bhavnesh Saini & Shri B.R.R. Kumar

…e based on correct facts. Notice based on wrong facts is without jurisdiction and is to 18 ITA.Nos.3869 & 3870/Del./2018 M/s. Madhu Apartment Private Limited, Delhi. be quashed. The Hon’ble Delhi High Court in the case of PCIT vs. M/s SNG Developers Limited, 404 ITR 312, has held that condition precedent for issue of notice for reassessment is that the reason to believe that income has escaped assessment must be based on correct facts. Notice based on wrong facts is without jurisdiction and has to be quashed. The above decision of the Hon’ble High Court was challenged by the Revenue before the apex court and the…

Vikas Chowdhary, New Delhi vs. ITO Ward - 36(4), New Delhi

In the result, appeal of the Assessee allowed

Bench: Shri Bhavnesh Saini

…sessment notice was issued were not found to exist, and, therefore, the Income-tax Officer did not get jurisdiction to make the reassessment.” 17 ITA.No 9742/Del./2019 6.3. The Hon’ble Delhi High Court in the case of Pr. CIT vs., SNG Developers Ltd., [2018] 404 ITR 312 (Del.) in which it was held as under : “Held, dismissing the appeal, that the reasons recorded by the Assessing Officer for reopening the assessment under section 147, issuing a notice under section 148 did not meet the statutory conditions. As already held by the Appellate Tribunal, there was a repetition of at least five accommodation entries a…

Neel Kant Chaudhary, Muzaffarnafar vs. ITO, Ward-2(5), Khatauli

In the result, appeal of assessee is allowed

Bench: Shri Bhavnesh Saini

…Law. We are fortified in our view by the Judgments of the Hon’ble Punjab & Haryana High Court in the case of CIT vs., Atlas Cycle Industries [1989] 180 ITR 319 [P&H], Judgment of Hon’ble Delhi High Court in the case of Pr. CIT vs., SNG Developers Ltd., [2018] 404 ITR 312 (Del.), Judgment of Hon’ble Delhi High Court in the case of Shamshad Khan vs., ACIT [2017] 395 ITR 265 (Del.) and Judgment of Hon’ble Bombay High Court in the case of Siemens Information Systems Ltd., vs., ACIT & Others [2007] 293 ITR 548 [Bom.]. It may also be noted here that though A.O. has referred to the commission earned by the assessee in a…