TaxTMI 
TaxTMI 
2026 (8) TMI 944
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....passed u/s. 143(3) of the Act pertaining to Assessment Year 2021-22. 2. Brief facts of the case are that assessee company filed its return of income on 10.03.2022, declaring total income of INR 1,68,94,31,551/-. The case of the assessee company was selected for scrutiny and after considering the submissions made by the assessee, assessment order was passed accepting the income declared in terms of the order dated 29.11.2022 u/s. 143(3) of the Act. Thereafter, Ld. PCIT invoked the provision of section 263 of the Act by observing that the assessee has claimed deduction of INR 8,89,17,450/- being 5% of the total income as u/s. 36(1)(viii)(c) of the Act and simultaneously, debited a sum of INR 1,53,93,44,681/-under the head provision for bad....
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.... aside order passed u/s. 143(3) as order u/s. 143(3) is invalid being passed by the authority not authorised to do it. Hence, the order u/s. 263 may be vacated. 3. That the Ld. PCIT (Central), Delhi-1 has erred in law and on facts in invoking section 263 and setting aside order passed u/s. 143(3) as order u/s. 143(3) in neither erroneous nor prejudicial to the interest of the assessee. Hence, the order u/s. 263 may be vacated. 4. That the Ld. PCIT (Central), Delhi-1 has erred in law and on facts in invoking section 263 and setting aside order passed u/s. 143(3) on the ground not disallowing provision for bad and doubtful debts to the extent of Rs. 1,53,93,44,681.00 ignoring the fact that it is already disallowed by the ass....
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....y been offered for tax and not claimed as deduction, there is no error in the assessment order. Ld.AR further drew our attention to page 6 of PB, which is copy of notice issued u/s. 142(1) dated 24.11.2022 wherein vide Point No.5A (PB-8), AO asked to file complete details of provision for bad and doubtful debts of INR 153 crores. Ld. AR further stated that in the same query letter vide Point No.8 (PB-9), the assessee asked to explain ICDS deviation of INR 480 crores. Ld.AR submits that assessee vide its submissions dt. 29.11.2022 filed online through e-filing portal made the replies with respect to bifurcation of ICDS deviation of INR 480 crores (PB-4) and further filed its detailed working which are placed at pages 5, 16, 19A & 19B of PB. ....
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.... fact is clear from the perusal of the computation of income available in PB page 4 & 5. It is further observed from the computation of income itself, that assessee has claimed deduction towards the provisions for Bad & Doubtful debts at INR 8,89,17,450/- as allowable u/s. 36(1)(viia) of the Act. The allegation of ld. PCIT was that the AO has allowed excess deduction of INR 146,68,23,319/- to the assessee. It is further observed that during the course of assessment proceedings, AO made specific queries vide notice issued u/s. 142(1) of the Act dated 24.11.2022 wherein AO asked the assessee to file all the relevant details regarding provision for bad and doubtful debts and asked to file details of ICDS deviation. The assessee vide reply date....
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....the inadequate inquiries or no inquiries and where the AO has made the inquiries and after considering the submissions filed, he reached to the conclusion which was found acceptable and it could not be held that AO has not made any inquiry or allowed the incorrect claim to the assessee. Similar view is taken by the hon'ble Supreme court in the case of The Malabar industrial Co. Ltd. Vs. CIT reported in (2000) 243 ITR 83 (SC). 10. In view of the above facts and after discussing overall material, we are of the view that the ld. PCIT has no material u/s. 263 of the Act to hold the assessment order passed as erroneous and prejudicial to the interest of revenue. Accordingly, the order of Ld. PCIT passed u/s. 263 is devoid of merit and is here....
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....e year (Clause 26Ata) of Tax Audit Report) 438 1.57,48,997 Professional tax paid during the year (Clause 26Ata) of Tax Audit Report) 430 15,000 Income considered under other head - Profit on mutual funds Capital Gain 31.60.44.568 Bad Debt thru Provision for Bad & Doubtful Account 13.62.40,888 Premium on redemption of debentures allowed over the tenure of debentures 36Cl)(vila) 8.89.17.450 Amint allowable u/s 36(1 )(vila) - applicable for NBFC - 5% of TI 3,22.64,65,753 Income under the head "Capital Gain" 31.60,44,568 Short Term Capital Gain on mutual funds 6.81.03.18,12,691 Sales Consideration 6,80,71,37,68,123 Lews: Cou of Acquisition -31.60,44,568 Less: Short term cap....