TaxTMI 
TaxTMI 
2026 (1) TMI 232
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....al to the interest of the Revenue having been satisfied. 3. On the facts and circumstances of the case, the order passed by the Ld. PCIT has erred in rejecting the contention of the assessee that his action of assuming jurisdiction u/s 263 is bad in law, as the issues raised in show cause notice u/s 263, already being a matter pending before the Commissioner of Income Tax (Appeals), the jurisdiction u/s 263 is in violation of clause (c) of the Explanation under sub section (1) of section 263. 4. (i) On the facts and circumstances of the case, the Ld. PCIT has erred both on facts and in law in ignoring the fact that the issues raised by him in notice u/s 263 were before the AO and as such the jurisdiction on these issues u/s 263 cannot be assumed by him. (ii) That the Ld. Pr. CIT has erred both on facts and in law in ignoring the contention of the appellant that the proceeding u/s 263 cannot be used for substituting opinion of the AO by that of the Pr. CIT. 5. (i) On the facts and circumstances of the case, the Ld. PCIT has erred both on facts and in law in enhancing the income of the assessee by Rs. 1,62,99,640/- on account of Sales held to be bo....
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....on 263 of the Act. In pursuance of a search having been conducted in the case of Sumit Jindal Group of cases, the cases of the assessee were reopened by issue of notice under section 153C of the Act. During the assessment proceedings various queries were raised by the Ld. Assessing Officer (AO) which was duly answered by the assessee, and orders under section 153C r.w.s. 143(3) of the Act were passed by the Ld. AO as on 21.03.2023. In these orders, following additions were made: AY 2017-18 Rs. 81,498/- AY 2018-19 Rs. 3,46,434/- AY 2019-20 Rs. 92,360/- These additions were made under section 69C by the A.O. on account of commission calculated @0.50% on all transactions including sales as well as purchases made by the assessee from Sumit Jindal group concerns holding the same to be bogus. Against the order of Ld. AO, the assessee filed an appeal before the Ld. Commissioner of Income Tax (Appeal) [CIT(A)] as on 18.04.2023 in respect of all 3 AY's. As on date the appeals are pending before the Ld. CIT(A). The Ld. PCIT issued show cause notices under section 263 of the Act as on 13.12.2024 for all 3 AY's, whereby the....
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.... Pg. 62-65 for AY 2017-18, PB Pg. 67-70 for AY 2018-19 and PB Pg. 68-71 for AY 2019-20) In this reply once again query with respect to transactions with Sumit Jindal group was made. (vii) Reply dated 16.12.2022 (PB pg. 66-69 for AY 2017-18, PB Pg. 71-72 for AY 2018- 19 and PB Pg. 72-74 For AY 2019-20) Vide this letter while explaining the impugned transactions, assessee filed copy of ledger account of concerned parties (PB Pg. 79 for AY 2017-18, PB Pg. 73-76 for AY 2018-19 and PB Pg. 75-78 for AY 2019-20), purchase register (PB Pg. 70-72 for AY 2017-18 PB. Pg. 77-79 for AY 2018-19 and 79-83 for AY 2019-20), sale register (PB Pg. 73-76 for AY 2017-18, PB. Pg. 81-83 for AY 2018-19 and PB. Pg. 86-91 for AY 2019-20), stock Summary (PB. pg. 77-78 for AY 2017-18, PB Pg. 80 for AY 2018-19 and PB Pg. 84-85 for AY 2019-20). (viii) Assessment order dated 21.03.2023 From the perusal of the assessment order, it can be seen that Ld. AO talks about only the sale/purchase from the concerned parties and discussion between the assessee and the assessing officer with respect to the same. The reason for getting these bills was clarified by Sh. Atu....
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...., [2024] 112 ITR (Trib.) 195 (ITAT Mumbai) - Madhuri Enterprises Pvt. Ltd. v. PCIT, ITA 1266/Del/2022, dt. 14.08.2024, ITAT Delhi (ix) An issue being subject matter of appeal cannot be raised by the PCIT under section 263 of the Act: - From the perusal of the facts narrated above, it can be seen that the order of Ld. AO passed on 21.03.2023 was taken in appeal before the Ld. CIT(A) as on 18.04.2023. It is also clear from the facts narrated above that the subject matter of the appeal was the same as has been raised by Ld. PCIT in its jurisdiction under section 263 of the Act as the show cause notice under section 263 of the Act was issued by Ld. PCIT as on 13.12.2024. The provisions of Explanation-1 to sub-section (i) to section 263, clause (c) reads as follows: - "where any order referred to in this subsection and passed by the Assessing Officer [or the Transfer Pricing Officer, as the case may be,] had been the subject matter of any appeal [filed on or before or after the 1st day of June, 1988] the powers of the [Principal Commissioner or] Commissioner under this sub-section shall extend [and shall be deemed always to have extended] to ....