2025 (6) TMI 2109

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....ary powers under Section 263 of the Income-tax Act, 1961 [hereinafter referred to as "the Act"], for the Assessment Year (AY) 2011-12. 2. The assessee has raised following grounds of appeal:- "The CIT has grievously erred in fact and in law in Invoking provisions of sec.263 for revising assessment order u/s.143(3), dated 28.3.2014, passed by AO for AY 2011-12, for adding, merely on the basis of audit query, to the book profit u/s.115JB of the Income Tax Act, 1961, the liability of Rs.5,24,57,203 under The Drugs Prices Control Order, 1995 (DPCO), raised by Government of India, recognized in the books of account and claimed in return of income by appellants by alleging that liability is unascertained liability since it is disputed....

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....e to the suit filed by Banks, which are not ascertained as on 31.03.2011. Therefore Rs.5,24,57,202/- (Rs.2,62,28,601 + Rs.2,62,28,601) was to be added back to the Book Profit u/s 115JB of the IT Act." 3.2 After considering the submissions and contentions made by the assessee, the Ld. PCIT set aside the assessment order u/s 263 of the Act. The Ld. PCIT directed the Assessing Officer to frame a fresh assessment after conducting proper enquiries and verification on the issues highlighted in the reasons for revision, and after duly examining the assessee's accounts and records. The relevant paragraphs of the order are reproduced hereunder for ready reference:- "4. I have carefully considered the submissions made by the assessee ....

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....fication of the vital issues put forth by assessee, as discussed in Para 4 herein above has rendered the assessment erroneous, in so far as, it is prejudicial to the interest of revenue. Therefore, in exercise of the powers conferred by the Section 263 of the Income-tax Act, 1961, the assessment is set aside with the directions that the assessment should be framed afresh by the A.O. after proper enquiries / verification on the aforementioned issue, examining the accounts and records of the assessee and after allowing reasonable opportunity of being heard to the assessee." 4. We heave heard the rival contentions and perused the material available on record. We find that the similar matter of allowability of DPCO liability is pending befor....