Case Number: ITA 456/DEL/2021
Appellant: Narendra Aggarwal, New Delhi
Respondent: PR. CIT – 7, Delhi
Assessment Year: 2015-16
Case Filed On: 2021-04-19
Order Type: Final Tribunal Order
Date of Order: 2022-04-04
Pronounced On: 2022-04-04
The case involves the appeal filed by Narendra Aggarwal against the order of the Principal Commissioner of Income Tax (PR. CIT) – 7, Delhi. The primary ground for the appeal was the jurisdiction assumed by PR. CIT under section 263 of the Income Tax Act, 1961, which the appellant challenged as erroneous and prejudicial to the interest of revenue.
The appellant raised several grounds in the appeal, including:
The Income Tax Appellate Tribunal (ITAT) found that the appellant had raised valid concerns regarding the jurisdiction assumed by PR. CIT under section 263. It was noted that the initial notice issued by PR. CIT was vague and did not provide specific reasons for invoking section 263. Additionally, the appellant had provided sufficient details and evidence during the assessment proceedings, which were duly considered by the assessing officer (AO) before passing the order under section 143(3) of the Act.
The ITAT also observed that the AO had conducted a thorough inquiry and verified the necessary documents before accepting the appellant’s claim of short-term capital gains. The tribunal held that the AO had taken a possible view based on the evidence presented, and therefore, the order could not be considered erroneous or prejudicial to the interest of revenue.
Based on the submissions and evidence, the ITAT set aside the order passed by PR. CIT under section 263 and restored the assessment order dated 27-12-2017 passed by the AO. The appeal filed by Narendra Aggarwal was allowed.
Order Pronounced in the Open Court on 04/04/2022.
Judicial Member: Kuldip Singh
Accountant Member: Anil Chaturvedi
Narendra Aggarwal, New Delhi vs. PR. CIT – 7, Delhi – ITA 456/DEL/2021
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