Crosslink Finlease Pvt. Ltd., New Delhi V. Pr.CIT- 2 , New Delhi

ITA 3278/DEL/2018

AI Insights

The case involves M/s Crosslink Finlease Pvt. Ltd., the appellant, contesting the jurisdiction and subsequent order of the PCIT-2, New Delhi, which was issued under Section 263 of the Income Tax Act. The PCIT had deemed the original assessment order dated 11.02.2016 as erroneous and prejudicial to the interests of the revenue concerning an accommodation entry of Rs. 6,00,000 through M/s Avail Financial Services Pvt. Ltd. The ITAT examined whether the Assessing Officer (AO) had conducted sufficient inquiry into this transaction during the reassessment proceedings. The Tribunal concluded that the AO had indeed made sufficient inquiries and accepted the assessee's return, leading to the decision to set aside the PCIT's order.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 129185 (ITAT-DELHI)
• Duration Of Justice: 5 year(s) 4 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-09-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 12-09-2023
• Assessment Year: 2010-2011
• Appeal Filed On: 06-05-2018
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Revision of order; Set aside
• Section: 147; 263; 143(3); 133(6)

Judgement Text

ITA No.- 3278/Del/2018 Crosslink Finlease Pvt. Ltd. Page 1 of 7 IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH: ‘B’: NEW DELHI) BEFORE SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER AND SHRI ANUBHAV SHARMA JUDICIAL MEMBER ITA No:- 3278/Del/2018 ( Assessment Year: 2010-11) M/s Crosslink Finlease Pvt. Ltd., New Delhi. Vs. Pr. CIT-2, New Delhi. PAN No: AABCC3727A APPELLANT RESPONDENT Assessee by : Shri Varun Gupta, CA Revenue by : Shri T James Singson, CIT(DR) Date of Hearing : 13.09.2023 Date of Pronouncement : 18.09.2023 ORDER PER N.K. BILLAIYA, AM This appeal by the Assessee is preferred against the order of the PCIT-2, New Delhi, dated 28/03/2018 framed U/s 263 of the Act. 2. The sum and substance of grievance of the assessee is that the PCIT erred in assuming jurisdiction U/s 263 of the Act and further erred in holding that the Assessment Order dated 11.02.2016 framed U/s 147 r.w.s. 143(3) of the Act, is not only erroneous but also prejudicial to the interest of the revenue. 3. Representatives of both the sides were heard at length. The case records ITA No.- 3278/Del/2018 Crosslink Finlease Pvt. Ltd. Page 2 of 7 carefully perused and the relevant documentary evidences brought on record duly considered in the light of Rule 18(6) of the ITAT Rules. 4. A perusal of the order of PCIT shows that he has assumed jurisdiction by issuing the following Show-cause notice U/s 263 of the Act: ITA No.- 3278/Del/2018 Crosslink Finlease Pvt. Ltd. Page 3 of 7 ITA No.- 3278/Del/2018 Crosslink Finlease Pvt. Ltd. Page 4 of 7 5. The issue which needs to be addressed is whether the AO has made any enquiry in respect of the alleged accommodation entry amounting to Rs. 6,00,000/- through M/s Avail Financial Services Pvt. Ltd. The answer lies in the reasons recorded for reopening the assessment which reads as under: ITA No.- 3278/Del/2018 Crosslink Finlease Pvt. Ltd. Page 5 of 7 6. After the reopening the assessment on the basis of the abovementioned reasons, the AO issued a Notice U/s 133(6) of the Act to M/s Avail Financial Services Pvt. Ltd., who responded as under: ITA No.- 3278/Del/2018 Crosslink Finlease Pvt. Ltd. Page 6 of 7 7. The above undisputed facts show that not only the AO had made sufficient enquiry but also the said party has confirmed the transaction on the basis of which the AO accepted the return of the assessee inspite of reopening the assessment on the very same ground which prompted the PCIT to assume jurisdiction U/s 263 of the Act. 8. Considering the facts of the case from all possible angle, we are of the considered opinion that the assessment order dated 11.02.2016 is neither erroneous nor prejudicial to the interest of the revenue. Therefore, the assumption of jurisdiction by the PCIT U/s 263 of the Act is bad in law and the order deserves to be set aside. We accordingly restore the assessment order dated 11.02.2016. 9. In the result, Appeal of the assessee is allowed. Order pronounced in the Open Court on 18.09.2023 Sd/- Sd/- (ANUBHAV SHARMA) (N.K. BILLAIYA) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 18 /09/2023. Pooja/- Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI ITA No.- 3278/Del/2018 Crosslink Finlease Pvt. Ltd. Page 7 of 7 Date of dictation 13.09.23 Date on which the typed draft is placed before the dictating Member 14.9.23 Date on which the typed draft is placed before the Other Member Date on which the approved draft comes to the Sr. PS/PS Date on which the fair order is placed before the Dictating Member for pronouncement Date on which the fair order comes back to the Sr. PS/PS Date on which the final order is uploaded on the website of ITAT Date on which the file goes to the Bench Clerk Date on which the file goes to the Head Clerk The date on which the file goes to the Assistant Registrar for signature on the order Date of dispatch of the Order