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December 2024

Sec. 263: Where there was no application of mind by CIT to take cognisance u/s 263 on the proposal sent by Additional CIT, order passed u/s 263 was to be quashed.

By Jagdish T Punjabi, Chartered Accountant
Devendra Jain & Aditya Bhatt, Advocates
Reading Time 6 mins

60 [2024] 113 ITR(T)158 (Kol - Trib.)

Rajesh Kumar Jalan vs. PCIT

ITA NO. 254 & 255 (KOL) OF 2024

A.Y.: 2015-16 & 2016-17

Dated: 12th June, 2024

Sec. 263: Where there was no application of mind by CIT to take cognisance u/s 263 on the proposal sent by Additional CIT, order passed u/s 263 was to be quashed.

FACTS

The assessee at the relevant time was engaged in trading of cloth and had filed return of income under presumptive taxation scheme contemplated u/s 44AD of the Act. The AO had received information from Bureau of Investigation, Commercial Taxes, West Bengal that the assessee had by fraudulent act opened seven Bank accounts under five proprietorship concerns and received a total sum of ₹112,41,47,898/- over the years. On perusal of the information, the AO recorded the reasons and reopened the assessment in both the assessment years.

The assessee had denied being the operator of any such alleged bank accounts. The AO not being satisfied with the assessee’s submission, passed the assessment orders for both the

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