Case Number: ITA 1068/DEL/2021
Appellant: Mohak Real Estate Private Limited, Gurugram, Haryana
Respondent: PCIT-4, Delhi
Assessment Year: 2016-17
Case Filed On: 2021-09-07
Order Type: Final Tribunal Order
Date of Order: 2023-05-25
Pronounced On: 2023-05-25
This case involves an appeal filed by Mohak Real Estate Private Limited against the Principal Commissioner of Income Tax (PCIT), Delhi, challenging the jurisdictional validity of an order passed under Section 263 of the Income Tax Act for the assessment year 2016-17. The appellant argued that the assessment order passed under Section 143(3) was neither erroneous nor prejudicial to the interests of the revenue.
The case was heard by the Income Tax Appellate Tribunal (ITAT) Delhi Bench ‘E’, comprising Shri Shamim Yahya (Accountant Member) and Ms. Astha Chandra (Judicial Member). The appellant, represented by Shri R.S. Singhvi and Shri Satyajeet Goel, contended that the PCIT had incorrectly invoked Section 263, as the assessment order was passed after proper satisfaction and was not erroneous.
The appellant raised several grounds, including:
The respondent, represented by Shri Sumit Kumar Verma, supported the PCIT’s order and cited several decisions to justify the assumption of jurisdiction under Section 263.
The tribunal examined the arguments and evidence presented by both sides. It found that the AO had conducted a detailed scrutiny and issued notices under Sections 143(2) and 142(1), to which the appellant responded with comprehensive replies. The tribunal concluded that the AO had applied his mind to the evidence and submissions, and there was no lack of enquiry.
The appeal was filed late by 114 days. The tribunal condoned the delay, considering the Supreme Court’s order in Miscellaneous Application No. 665/2021, which provided relief due to the COVID-19 pandemic.
The tribunal noted that the PCIT’s order did not consider the detailed submissions made by the appellant in response to the show cause notice. The PCIT’s failure to conduct a minimal enquiry before assuming jurisdiction under Section 263 was contrary to the law laid down by the Delhi High Court in PCIT vs. Delhi Airport Metro Express Pvt. Ltd. (2017) 398 ITR 8 (Delhi).
The tribunal held that the AO had made proper enquiries and applied his mind before completing the assessment. Therefore, the PCIT’s assumption of jurisdiction under Section 263 was not in accordance with the law. The tribunal cancelled the impugned order and allowed the appeal filed by Mohak Real Estate Private Limited.
Order Pronounced: May 25, 2023
By: Shri Shamim Yahya (Accountant Member) and Ms. Astha Chandra (Judicial Member)
Source: Income Tax Appellate Tribunal, Delhi Bench ‘E’, New Delhi
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