This case involves a dispute between NKB Infrastructure (P) Ltd and the Principal Commissioner of Income Tax (Pr. CIT), Faridabad, concerning an appeal against the revisionary order under section 263 of the Income-tax Act, 1961. The appeal, registered under ITA No. 450/Del/2021 for the assessment year 2015-16, was heard by the Delhi Bench ‘E’ of the Income Tax Appellate Tribunal.
The appellant, NKB Infrastructure, contested the revisionary order issued by the Pr. CIT, which declared the original assessment order as erroneous and prejudicial to the interests of the revenue. The primary contention was the lack of statutory preconditions for such a revision and an absence of substantial inquiry.
The appellant argued that the original assessing officer had conducted adequate inquiries and any further revision was unwarranted and lacked jurisdiction. They highlighted specific instances where inquiries were made, particularly regarding the depreciation claims and unsecured loans, which the Pr. CIT had overlooked. The defense relied on various precedents to assert that the revision was unjustified and that the assessing officer’s decisions were not erroneous.
The tribunal, after examining the submissions and the legislative context under section 263, agreed with the appellant. It was noted that the Pr. CIT did not adequately justify the revisionary order’s basis, which led to its being set aside. The tribunal’s decision emphasized the necessity of clear, evidence-backed reasoning for such revisions and found that the original assessment was conducted properly.
This case underscores the importance of procedural correctness and thorough inquiry in the assessment and revision processes under the Income-tax Act. It reaffirms the judiciary’s role in ensuring that revisions to assessment orders are made only when clearly warranted and substantiated by evidence.
Appeal Against Revisionary Order by NKB Infrastructure on Erroneous Grounds – ITA No. 450/DEL/2021
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