PCIT v. M/s SNG Developers Limited

404 ITR 312High Court2018#1585 most cited

What is PCIT v. M/s SNG Developers Limited authority for?

Reasons for reopening assessment under Section 147 and issuing a Section 148 notice must meet statutory conditions. A flawed belief that income escaped assessment, based on incorrect facts like misidentified accommodation entries, vitiates reassessment jurisdiction.

71

judgments rely on this decision, according to BharatTax’s citation analysis of 366,470 Indian tax judgments — from 2018 to 2025.

Also referred to as

PCIT v. SNG Developers Limited · 404 ITR 312 · Section 147 · Section 148 · reopening assessment · reasons recorded · statutory conditions · escaped assessment · accommodation entries · jurisdiction · non-application of mind

Sections most often in play

Section 147Section 148Section 143(3)Section 151Section 143(1)Section 133(6)Section 139Section 142(1)

Issues it is cited on

sanction under section 151section 147(b)processing under section 143(1)section 151(1)non application of mindlive linkmaterial facts necessary for assessmentshell companyfull and true disclosureshare capital and share premiumnon-application of mindsanctioning authority

Judgments citing PCIT v. M/s SNG Developers Limited

Dheeraj Yadav, Gurgaon vs. ITO Ward - 46(5), New Delhi

In the result, appeal of the Assessee allowed

ITA 6701/DEL/2019[2011-12]Status: DisposedITAT Delhi01 Jan 2021AY 2011-12

Bench: Shri Bhavnesh Saini & Shri Anil Chaturvedi

For Appellant: Shri Shantanu Jain, AdvocateFor Respondent: Mr. Sri Prakash Dubey, Sr.DR
Section 147Section 149(1)Section 151(3)Section 69A

…Hon’ble Punjab & Haryana High Court in the case of CIT vs., 17 ITA.No.6701/Del./2019 Shri Dheeraj Yadav, Gurgaon. 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…

Maheshwari Roller Flour Mills Pvt Ltd, New Delhi vs. ITO Ward - 16(1), New Delhi

In the result, appeal of the Assessee allowed

ITA 4257/DEL/2019[2009-10]Status: DisposedITAT Delhi15 Dec 2020AY 2009-10

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

For Appellant: Shri Raj Kumar, C.AFor Respondent: Shri Prakash Duby, Sr. DR
Section 143(1)Section 147Section 148Section 150(1)Section 150(2)Section 2Section 68Section 69C

…be based on correct facts. Notice based on wrong facts is without jurisdiction and is to 38 ITA.No.4257/Del./2019 Maheshwari Roller Flour Mills Pvt. Ltd., New 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…

Natrajan Monie, Gurgaon vs. ITO, Gurgaon

In the result, appeal of the Assessee allowed

ITA 1817/DEL/2017[2011-12]Status: DisposedITAT Delhi07 Dec 2020AY 2011-12

Bench: Shri Bhavnesh Saini & Shri Prashant Maharishi

For Appellant: Shri Kapil Goel, AdvocateFor Respondent: Ms. Rinku Singh, Sr.DR
Section 147Section 148

…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 13 ITA.No.1817/Del./2…

Ganapati Developers, Howrah vs. A.C.I.T., Circle-47, Kolkata

In the result, the appeal of the assessee is allowed

ITA 139/KOL/2020[2013-14]Status: DisposedITAT Kolkata02 Nov 2020AY 2013-14

Bench: Sri J. Sudhakar Reddy & Smt. Madhumita Roy)

Section 143(1)Section 143(3)Section 147Section 148Section 148(2)Section 151Section 250Section 68

…d hence the re-opening of assessment is bad in law. b) That the AO has not disposed off the objections raised by the assessee and hence the assessment is bad in law. He relied on the following case laws for this proposition: i) Pr. CIT vs. SNG Developers Ltd. 404 ITR 312 (Del.) ii) Ankita A. Choksey vs. ITO (2019) 411 ITR 207 (Bom)(HC) He also relied on many other judgements, which we will be dealing with, as and when necessary. c) The ld. Counsel for the assessee refers to the order of the ld. CIT(A) [at page 18 para 3] and submits that only gross profit on purchases were directed to be added and that this was w…

Krish Impex Pvt. Ltd., Delhi vs. ITO Ward-14(4), New Delhi

In the result, the appeal of the assessee is allowed

ITA 7610/DEL/2019[2010-11]Status: DisposedITAT Delhi29 Oct 2020AY 2010-11

Bench: Shri Amit Shukla & Shri Prashant Maharishi

For Appellant: Shri Raj Kumar, CAFor Respondent: Shri R. K. Gupta, Sr.D.R
Section 143(3)Section 147Section 148Section 151Section 68Section 69

…ent of Hon’ble Jurisdictional High Court in the case of PCIT vs. RMG Polyvinyal (I) Ltd., 396 ITR 5 (Del) and judgment of Hon’ble Gujarat High Court in the case of Vijay Haishchandra Patel Vs. ITO as reported in 400 ITR 167 (Guj.); and S.N.G. Developers Ltd., 404 ITR 312 (Del) and catena of other judgments. 6 I.T.A. No.7610 /DEL/2019 6. On the other hand, ld. DR submitted that in the ITD system return filed, return of income filed by the assessee was not reflected and the Assessing Officer could have only verified by the ITD system. Otherwise also, from the perusal of the reasons recorded it can be seen that th…

Vrc Township P Ltd., Delhi vs. ITO, New Delhi

In the result, appeal of the Assessee allowed

ITA 1503/DEL/2017[2007-08]Status: DisposedITAT Delhi14 Oct 2020AY 2007-08

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

For Appellant: Shri Suresh K. Gupta, C.AFor Respondent: Ms. Shalini Verma, Sr. D.R
Section 143(1)Section 147Section 148Section 151Section 68

…escaped assessment must be based on correct facts. Notice based on wrong facts is without jurisdiction and is to 20 ITA.No.1503/Del./2017 VRC Township P. Ltd., 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…

M/S. Shree Balkishan Agarwal Glass Industries Ltd., Delhi vs. DCIT, New Delhi

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

ITA 5798/DEL/2016[2005-06]Status: DisposedITAT Delhi18 Sept 2020AY 2005-06

Bench: Shri R.K. Panda & Ms Suchitra Kambleassessment Year: 2005-06 Shree Balkishan Agarwal Glass Vs Dcit, Industries Ltd., Circle-8(1), C/O Sarvam & Associates, New Delhi. 403, Klj Tower North, B-5, Netaji Subhash Place, District Centre, Pitampura, Delhi. Pan: Aabcs2870C (Appellant) (Respondent) Assessee By : Shri Suresh Gupta, Ca Revenue By : Shri Saras Kumar, Sr. Dr Date Of Hearing : 26.08.2020 Date Of Pronouncement : 21.09.2020 Order Per R.K. Panda, Am:

For Appellant: Shri Suresh Gupta, CAFor Respondent: Shri Saras Kumar, Sr. DR
Section 139Section 142(1)Section 143(1)Section 147Section 148

…m Ltd., vs. ACIT & Others (2007) 293 ITR 548 (Bom); iv) Ankita A. Choksey vs. Income Tax Officer And Others (2019) 411 ITR 207 (Bom); v) DCIT vs M/s KLA Foods (India) Ltd and othrs IT A No.2846/Del/2015 dt: 08.04.2019; vi) Pr CIT vs M/S SNG Developers Ltd., 404 ITR 312 (Del) SLP of revenue dismissed in SLP © 42379/2017 Dt: 09.02.2018; vii) M/s SPJ Hotels P Ltd., ITA No.2857/Del/2017 viii) M/s Superior Buildwell P Ltd., ITA No.3301/Del/2017 ix) M/s Superior Technologies P LtdITA No.2269/Del/2017 x) M/s Shiv Sai Infrastructure P. Ltd., ITA No.2527/Del/2017. 9. The ld. counsel for the assessee submitted that the A…

Sourav Jindal, Faridabad vs. ITO Ward - 2(4), Faridabad

In the result, ITA.No.7376/Del

ITA 7378/DEL/2019[2011-12]Status: DisposedITAT Delhi10 Sept 2020AY 2011-12

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

Section 142(1)Section 147Section 148

…he Learned Counsel for the Assessee has relied upon Judgment of the Hon’ble Punjab & Haryana High court in the case of Pr. CIT vs., Atlas Cycle Industries 180 ITR 319 (P&H), Judgment of Hon’ble Delhi High Court in the case of Pr. CIT vs., SNG Developers Ltd., 404 ITR 312 and Order of ITAT, SMC-Bench in the case of Shri S.N.Arora/ Sapra in ITA.Nos.4251 & 4252/Del./2018 pronounced on 30.01.2020 in which it was held that “in case incorrect, wrong and non-existing reasons are recorded by the A.O. for reopening of the assessment and that A.O. failed to verify the information received from Investigation Wing, the reope…

Gourav Aggarwal, Faridabad vs. ITO Ward - 1(3), Faridabad

In the result, ITA.No.7376/Del

ITA 7377/DEL/2019[2011-12]Status: DisposedITAT Delhi10 Sept 2020AY 2011-12

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

Section 142(1)Section 147Section 148

…he Learned Counsel for the Assessee has relied upon Judgment of the Hon’ble Punjab & Haryana High court in the case of Pr. CIT vs., Atlas Cycle Industries 180 ITR 319 (P&H), Judgment of Hon’ble Delhi High Court in the case of Pr. CIT vs., SNG Developers Ltd., 404 ITR 312 and Order of ITAT, SMC-Bench in the case of Shri S.N.Arora/ Sapra in ITA.Nos.4251 & 4252/Del./2018 pronounced on 30.01.2020 in which it was held that “in case incorrect, wrong and non-existing reasons are recorded by the A.O. for reopening of the assessment and that A.O. failed to verify the information received from Investigation Wing, the reope…

Hanuman Prasad Aggarwal, Faridabad vs. ITO Ward - 1(3), Faridabad

In the result, ITA.No.7376/Del

ITA 7376/DEL/2019[2011-12]Status: DisposedITAT Delhi10 Sept 2020AY 2011-12

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

Section 142(1)Section 147Section 148

…he Learned Counsel for the Assessee has relied upon Judgment of the Hon’ble Punjab & Haryana High court in the case of Pr. CIT vs., Atlas Cycle Industries 180 ITR 319 (P&H), Judgment of Hon’ble Delhi High Court in the case of Pr. CIT vs., SNG Developers Ltd., 404 ITR 312 and Order of ITAT, SMC-Bench in the case of Shri S.N.Arora/ Sapra in ITA.Nos.4251 & 4252/Del./2018 pronounced on 30.01.2020 in which it was held that “in case incorrect, wrong and non-existing reasons are recorded by the A.O. for reopening of the assessment and that A.O. failed to verify the information received from Investigation Wing, the reope…

Narender Kumar Gupta, New Delhi vs. ITO Ward-2(1), Faridabad

In the result, ITA.No.7376/Del

ITA 7375/DEL/2019[2011-12]Status: DisposedITAT Delhi10 Sept 2020AY 2011-12

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

Section 142(1)Section 147Section 148

…he Learned Counsel for the Assessee has relied upon Judgment of the Hon’ble Punjab & Haryana High court in the case of Pr. CIT vs., Atlas Cycle Industries 180 ITR 319 (P&H), Judgment of Hon’ble Delhi High Court in the case of Pr. CIT vs., SNG Developers Ltd., 404 ITR 312 and Order of ITAT, SMC-Bench in the case of Shri S.N.Arora/ Sapra in ITA.Nos.4251 & 4252/Del./2018 pronounced on 30.01.2020 in which it was held that “in case incorrect, wrong and non-existing reasons are recorded by the A.O. for reopening of the assessment and that A.O. failed to verify the information received from Investigation Wing, the reope…

Garima Aggarwal, Faridabad vs. ITO Ward - 1(3), Faridabad

In the result, ITA.No.7376/Del

ITA 7374/DEL/2019[2011-12]Status: DisposedITAT Delhi10 Sept 2020AY 2011-12

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

Section 142(1)Section 147Section 148

…he Learned Counsel for the Assessee has relied upon Judgment of the Hon’ble Punjab & Haryana High court in the case of Pr. CIT vs., Atlas Cycle Industries 180 ITR 319 (P&H), Judgment of Hon’ble Delhi High Court in the case of Pr. CIT vs., SNG Developers Ltd., 404 ITR 312 and Order of ITAT, SMC-Bench in the case of Shri S.N.Arora/ Sapra in ITA.Nos.4251 & 4252/Del./2018 pronounced on 30.01.2020 in which it was held that “in case incorrect, wrong and non-existing reasons are recorded by the A.O. for reopening of the assessment and that A.O. failed to verify the information received from Investigation Wing, the reope…

Sheela Aggarwal, Faridabad vs. ITO Ward - 2(3), Faridabad

In the result, ITA.No.7376/Del

ITA 7373/DEL/2019[2011-12]Status: DisposedITAT Delhi10 Sept 2020AY 2011-12

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

Section 142(1)Section 147Section 148

…he Learned Counsel for the Assessee has relied upon Judgment of the Hon’ble Punjab & Haryana High court in the case of Pr. CIT vs., Atlas Cycle Industries 180 ITR 319 (P&H), Judgment of Hon’ble Delhi High Court in the case of Pr. CIT vs., SNG Developers Ltd., 404 ITR 312 and Order of ITAT, SMC-Bench in the case of Shri S.N.Arora/ Sapra in ITA.Nos.4251 & 4252/Del./2018 pronounced on 30.01.2020 in which it was held that “in case incorrect, wrong and non-existing reasons are recorded by the A.O. for reopening of the assessment and that A.O. failed to verify the information received from Investigation Wing, the reope…

Meena Gupta, Faridabad vs. ITO Ward - 1(5), Faridabad

In the result, ITA.No.7376/Del

ITA 7372/DEL/2019[2011-12]Status: DisposedITAT Delhi10 Sept 2020AY 2011-12

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

Section 142(1)Section 147Section 148

…he Learned Counsel for the Assessee has relied upon Judgment of the Hon’ble Punjab & Haryana High court in the case of Pr. CIT vs., Atlas Cycle Industries 180 ITR 319 (P&H), Judgment of Hon’ble Delhi High Court in the case of Pr. CIT vs., SNG Developers Ltd., 404 ITR 312 and Order of ITAT, SMC-Bench in the case of Shri S.N.Arora/ Sapra in ITA.Nos.4251 & 4252/Del./2018 pronounced on 30.01.2020 in which it was held that “in case incorrect, wrong and non-existing reasons are recorded by the A.O. for reopening of the assessment and that A.O. failed to verify the information received from Investigation Wing, the reope…

Belmarks Metal Works, New Delhi vs. ITO, Ward- 32(2), New Delhi

In the result, the appeal of the assessee is partly allowed

ITA 5198/DEL/2018[2011-12]Status: DisposedITAT Delhi05 Mar 2020AY 2011-12

Bench: Shri Amit Shukla

For Appellant: Shri S.K. Sarkar, CAFor Respondent: Shri Saras Kumar, Sr.D.R
Section 147Section 148Section 234B

…he done so then he would have to come to the conclusion that assessee has not made purchase from M/s. Supreme Enterprises for that amount. In support, he relied upon the judgment of Hon’ble Delhi High Court in the case of PCIT vs. SNG Developers Ltd., (2018) 404 ITR 312 (Del.). 7. On the other hand, ld. DR has strongly relied upon the order of the Assessing Officer and Ld. CIT(A) and submitted that, here in this case the information sent by the Investigation Wing specifically contained the details of the assessee who was mentioned as a beneficiary of the bogus purchases made from M/s. Supreme Enterprises. Apart…

M/S. Bull Riders Financial Services (P) Ltd., New Delhi vs. ITO, Ghaziabad

In the result, appeal of the Assessee allowed

ITA 1891/DEL/2017[2005-06]Status: DisposedITAT Delhi10 Feb 2020AY 2005-06

Bench: Shri Bhavnesh Saini & Shri R.K. Panda

For Appellant: Shri Somil AgarwalFor Respondent: Shri S.L. Anuragi, Sr. D.R
Section 143(3)Section 147Section 148Section 151Section 68

…Income-tax Officer did not get jurisdiction to make the reassessment.” 14 ITA.No.1891/Del./2017 M/s. Bull Riders Financial Services (P) Ltd., Ghaziabad, Uttar Pradesh. 5.3. 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…

S.N. Arora/Sapra, New Delhi vs. ITO, Ward- 23(2), New Delhi

In the result, appeal of the Assessee for the A

ITA 4252/DEL/2018[2007-08]Status: DisposedITAT Delhi30 Jan 2020AY 2007-08

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

For Appellant: Shri R.S. Singhvi, C.A. And Shri Satyajeet Goel, C.AFor Respondent: Ms. Rakhi Vimal, Sr. D.R
Section 143(1)Section 148Section 68

…to exist, and, therefore, the Income-tax Officer did not get jurisdiction to make the reassessment.” 12 ITA.Nos.4251 & 4252/Del./2018 Shri S.N. Arora/Sapra, New Delhi. 9.2. 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…

S.N. Arora/Sapra, New Delhi vs. ITO, Ward- 23(2), New Delhi

In the result, appeal of the Assessee for the A

ITA 4251/DEL/2018[2006-07]Status: DisposedITAT Delhi30 Jan 2020AY 2006-07

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

For Appellant: Shri R.S. Singhvi, C.A. And Shri Satyajeet Goel, C.AFor Respondent: Ms. Rakhi Vimal, Sr. D.R
Section 143(1)Section 148Section 68

…to exist, and, therefore, the Income-tax Officer did not get jurisdiction to make the reassessment.” 12 ITA.Nos.4251 & 4252/Del./2018 Shri S.N. Arora/Sapra, New Delhi. 9.2. 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…

Charbuja Marmo (India) Pvt. Ltd., Delhi vs. Pr.CIT- 2, New Delhi

In the result, appeal of Assessee allowed

ITA 4749/DEL/2019[2010-11]Status: DisposedITAT Delhi31 Dec 2019AY 2010-11

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

For Appellant: Shri Kapil Goel, AdvocateFor Respondent: Ms. Nidhi Srivastava, CIT-DR
Section 143(1)Section 147Section 148Section 151Section 263

…High Court in the case of CIT vs. Suren International (2013) 357 ITR 24 (Del.), Judgment of Delhi High Court in the case of PCIT vs. RMG Polyvinyl (I) Ltd., (2017) 396 ITR 5 (Del.) and Judgment of Delhi High Court in the case of SNG Developers Ltd., (2018) 404 ITR 312 (Del.). He has submitted that since re- assessment order was invalid and bad in law, therefore, same cannot be revised under section 263 of the I.T. Act. No cross-examination have been allowed to the statement of Shri 43 ITA.No.4749/Del./2019 M/s. Charbuja Marmo (India) Pvt. Ltd., Delhi. S.K. Jain, therefore, re-assessment order is bad in law…

Jindal Steel & Power Ltd., Hisar vs. Prcit, Gurugram

In the result appeal of the assessee is dismissed

ITA 2902/DEL/2018[2008-09]Status: DisposedITAT Delhi04 Jun 2019AY 2008-09

Bench: Shri Bhavnesh Saini & Shri Prashant Maharishijindal Steel & Power Limited, Vs. Pr. Commissioner Of Income Delhi Road, Hissar, Tax, Haryana, India Gurugram, (Appellant) (Respondent)

For Appellant: Shri Salil Kapoor, AdvFor Respondent: Shri J K Mishra, CIT DR
Section 143(3)Section 147Section 148Section 14ASection 263Section 263(2)

…are bad in law and liable to be quashed. We, accordingly, set aside the Order of Ld. Pr. CIT passed under section 263 of the I.T. Act and quash the same. Adjudication- Paragraph 13.2 at Page 40 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…