2024 (9) TMI 210

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....er of Income Tax (Central), Gurgaon (hereinafter referred as 'the Ld. PCIT') in Appeal Nos. PCIT (Central), Gurgaon/Revision- 263/100000653484/2024, PCIT (Central), Gurgaon/ Revision 263/100000653483/2024, PCIT (Central), Gurgaon/ Revision- 263/100000653482/2024 and PCIT (Central), Gurgaon/ Revision- 263/100000652485/2024, respectively arising out of the assessment orders dated 25.09.2021 passed u/s 153A of the Act by the ACIT, Central Circle, Faridabad ('the ld. AO' for short). 2. The facts of the case, in brief, are that consequent to search and seizure operations, the case of the assessee, who is in the business of stone crusher, the assessments were completed u/s 153A of the Act on the returned income. However, the ld.PCIT was not sa....

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.... of the Act. 4.1 This aspect could not be rebutted by the ld. DR and, thus, we are of the considered view that on this ground alone in regard to AYs 2015-16 and 2016- 17, the impugned order of PCIT u/s 263 of the Act is not sustainable as what could not have been done by the AO u/s 153A cannot be made to be done by AO by invoking the provisions of section 263A of the Act. 5. Further, the ld. AR has submitted that in regard to the assessment orders under consideration for the four years, the assessment orders were passed u/s 153A of the Act after approval of Addl. CIT u/s 153D dated 24.09.2021. It was submitted by the ld. AR that an order which has been subject of approval u/s 153D of the Act cannot be subject to revision u/s 263 of th....

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.... ITA No.162/Nag/2018, order dated 01.04.2022 in M/s Shrigopal Rameshkumar Sales Pvt. Ltd. vs. ACIT. 7. We have given thoughtful consideration to this aspect of the controversy and we find that a specific ground No.2 is raised by the assessee as follows:- "2. That the asstt. Order passed u/s 153A r.w.s. 143(3) after getting an approval of Addl. Commissioner U/s 153D could not be revised u/s 263, hence Ld. PCIT exceeded his jurisdiction in invoking Sec.263 in respect of impugned asstt. Order framed u/s 153A r.w.s. 153D." 8. The assessment orders make it categorical that the same are passed with statutory approval of Addl. Commissioner of Income-tax, Central Range, Gurgaon communicated vide his office letter F. No. Addl.CIT(CR)/....

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....the PCIT is unsustainable due to lack of jurisdiction in invoking section 263 of the Act for the reason that the same was passed upon taking prior approval u/s 153A of the Act, was not challenged by the Department before the Hon'ble High Court or the Hon'ble Supreme Court and, thus, the Hon'ble Madras High Court in its judgement dated 01.04.2024 has held as follows:- "8. Even otherwise, as per Section 263 of the Act, the Principal Chief Commissioner or Principal Commissioner or Commissioner may call for and examine the record of any proceeding under this Act and if he considers that any order passed therein by the Assessing Officer, is erroneous in so far as it is prejudicial to the interests of the Revenue, he may make enquiry as ....