2025 (12) TMI 739

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... 1. "The learned PCIT has erred in law and on facts in passing the order u/s. 263 of the Act while considering the assessment order u/s. 147 r.w.s 144B of the Act passed by the FAO on 24/03/2022 for the year in question as erroneous and prejudicial to the revenue inasmuch as he had accepted the returned income as assessed income while not making any additions as per the SCN issued ad reason recorded for reopening of the assessment. 2. The learned PCIT has erred I law and on facts for not considering/appreciating the submission of the appellant filed before him in right perspective before passing of the impugned order u/s. 263 of the Act. 3. The learned PCIT has erred in law ad on facts in passing the revision orde....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....case. Since the FAO has accepted the returned income as an assessed income and not made any addition after verification of facts of the case, the direction given by the learned PCIT to verify the same facts again is bad in law and consequentially order u/s. 263 of the ACT requires to be quashed". 3. The Assessing Officer issued notice under section 148 of the Income-tax Act on 29.03.2021, after obtaining due approval under section 151 from the Principal Commissioner of Income Tax, Ahmedabad-1, for alleged escapement of income amounting to Rs. 1,37,80,069/-. According to the reasons recorded, the assessee had allegedly received unsecured loans of Rs. 1.37 crores from M/s Dishman Pharmaceutical and Chemical Ltd. during the relevant financi....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....lready assessed in the hands of Shri Sanjay Shah by the Revenue. Therefore, it is an accepted and undisputed fact that although the bank account stands in the name of Shri Bipin Patel, it was operated and controlled solely by Shri Sanjay R. Shah, and all related transactions have already been offered to tax by him and assessed by the Department. The Ld. PCIT, however, held that the Assessing Officer erred in not verifying the income arising from transactions operated by the entry operator, Shri Sanjay Shah, and that the error resulted in loss of Revenue. He further observed (Page 17, Para 7) that the Assessing Officer did not confine his enquiry to the reasons recorded for reopening and failed to verify the issue of accommodation entries fr....