Case Number: ITA 791/DEL/2021
Appellant: Manmohan Singh Sehgal, Delhi
Respondent: Pr. CIT Delhi-10, New Delhi
Assessment Year: 2011-12
Case Filed on: 2021-06-24
Order Type: Final Tribunal Order
Date of Order: 2023-09-14
Pronounced on: 2023-09-14
This case involves Manmohan Singh Sehgal, a taxpayer from Delhi, who filed an appeal against the Principal Commissioner of Income Tax (PCIT) Delhi-10. The appellant contested the PCIT’s revisionary order under Section 263 of the Income Tax Act, 1961, which sought to revise a reassessment order passed under Sections 147/143(3) for the assessment year 2011-12.
The appellant raised several grounds challenging the jurisdiction and legality of the revisionary proceedings initiated by the PCIT. Key grounds included:
The case was heard by the Income Tax Appellate Tribunal (ITAT) Delhi Bench ‘E’ on 20.07.2023, with Sh. C. M. Garg, Judicial Member, and Dr. B. R. R. Kumar, Accountant Member, presiding over the matter. The appellant was represented by Sh. C. S. Anand, Adv., while the respondent was represented by Sh. Subhra J. Chakraborty, CIT-DR.
The appellant’s counsel argued that the reassessment order dated 11.07.2018 was passed without proper jurisdiction, and therefore, the subsequent revisionary proceedings were also without jurisdiction and illegal. It was also argued that the PCIT did not consider the appellant’s detailed submissions, and the reassessment order was neither erroneous nor prejudicial to the Revenue.
Upon reviewing the facts and submissions, the ITAT found that the issues in the reassessment order had already been scrutinized in multiple proceedings:
The ITAT observed that all additions made in the original assessment were again made in the reassessment and were subject to scrutiny in the appeals. Thus, the issues had been thoroughly examined multiple times, making the PCIT’s order under Section 263 redundant.
The ITAT concluded that the order passed by the PCIT under Section 263 was not sustainable and allowed the appeal in favor of the appellant, quashing the PCIT’s order.
In conclusion, the ITAT ruled in favor of Manmohan Singh Sehgal, allowing the appeal and quashing the PCIT’s order under Section 263. The tribunal emphasized that the issues had been repeatedly scrutinized, and the PCIT’s revision was unnecessary and unsustainable.
Order pronounced in the open court on 14.09.2023
Signed:
C. M. Garg, Judicial Member
Dr. B. R. R. Kumar, Accountant Member
Assistant Registrar, ITAT, New Delhi
Manmohan Singh Sehgal vs. Pr. CIT Delhi-10: Appeal on Reassessment and Revision – ITA 791/DEL/2021
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