2023 (9) TMI 469

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....or the assessment year 2015-16 u/s. 143(3) of the Income Tax Act, 1961 (hereinafter 'the Act'), vide order dated 11.05.2017. 2. At the outset, it is noticed that this appeal is barred by limitation by 382 days. The facts are that the order of PCIT dated 12.03.2021 was received by assessee as per Form No. 36 on 17.03.2021. The assessee is supposed to file appeal on or before 16.05.2021 but actually appeal is filed on 02.06.2022. The assessee filed condonation petition along with affidavit stating the reason that the Hon'ble Supreme Court vide order in SMW(C) No. 3 of 2020 dated 23.03.2020 extended the limitation for filing the appeals and subsequently in M.A. No. 665 of 2021 had restored the order dated 23.03.2020, in continuation of order ....

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.... The only issue in this appeal is against the revision order passed by the PCIT u/s. 263 of the Act setting aside the assessment framed u/s. 143(3) of the Act dated 11.05.2017 by the AO on the issue of non-verification of sundry creditors. For this assessee has raised various grounds i.e., Ground Nos. 1.1 to 4.2, which we have considered, and are argumentative, exhaustive and factual, hence need not be reproduced. 4. Brief facts are that the assessee firm is carrying on wholesale business in iron and steel. The assessee filed its return of income for the relevant assessment year 2015-16 on 15.08.2015 and the same was processed by the Income-tax Department u/s. 143(1) of the Act. The assessee's case was selected for scrutiny assessment unde....

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.... number, confirmation letter, address of creditors and copies of their return of income and failed to verify the creditworthiness of the assessee claimed. Hence, the PCIT set aside the issue of sundry creditors to the file of the AO for reframing assessment after verification by observing in para 7 as under:- "7. In view of the above, I am satisfied that the order dated 11.05.2017 passed by the Assessing Officer u/s 143(3) of the Income Tax Act is erroneous in so far it is prejudicial to the interest of the revenue. Accordingly, in exercise of powers conferred u/s 263 of the Act, I set aside the aforesaid order with the direction to the Assessing Officer to frame the assessment after making necessary enquiries and verification in accordan....