The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has quashed revision order passed by the Principal Commissioner of Income Tax (PCIT) without citing that prior approval under section 153D of the Income Tax Act was erroneous.
The bench of Satbeer Singh Godara (Judicial Member) and Shri M. Balaganesh (Accountant Member) has observed that PCIT has not taken account of the fact that the assessments were completed after prior approval of the competent authority.
The appellant/assessee has challenged the order of the Pr. CIT, against the order of assessment passed u/s 153C of the Income-tax Act, 1961 by the Assessing Officer.
The return of income for AY 2013-14 was filed by the assessee on 29.09.2013 declaring total income of Rs. 8,090. A search and seizure action u/s 132 of the Act was carried out on 18.10.2019 at Alankit Group of companies. During the search & seizure proceedings, documents/ incriminating materials related to the assessee were found.
Hence, notice u/s 153C of the Act stood issued to the assessee on 26.02.2021 and assessment proceedings were completed on 31.03.2022 u/s 153C of the Income Tax Act determining income of Rs. 6,71,48,270/-. The assessee had preferred an appeal before National Faceless Appeal Centre (NFAC) and the same is pending. Pending this appeal, the ld PCIT sought to revise the order passed by the AO dated 31.03.2022 by treating the order passed by the AO erroneous and prejudicial to the interest of the revenue.
The assessment order sought to be revised was framed by the AO under secrtion 153C of the Act on 31.03.2022 and this assessment was framed after obtaining the prior approval of the ld Additional CIT.
This approval obtained from the Addl. CIT was not considered erroneous and prejudicial to the interest of the revenue by the PCIT in his revision order under secrtion 263 of the Act.
The assessee argued that the CIT in order to revoke his revisional jurisdiction under section 263 of the Act should also hold even the approval proceeding granted by the Addl. CIT under section 153D of the Act to be erroneous and prejudicial to the interest of the revenue.
The tribunal, while allowing the appeal, quashed the revision order passed u/s 263 of the Act by the PCIT.
Case Details
Case Title: Alankit Associates Pvt. Ltd Versus PCIT
Case No.: ITA No. 2051/Del/2024
Date: 25/11/2024
Counsel For Petitioner: Salil Kapoor
Counsel For Respondent: Poojan Rana
