Allen Petrochemicals Pvt Ltd

Parties Involved

Facts Summary

A search action under section 132 was conducted on 15.01.2021 in the Blomstrende Buildwell group of cases including M/s Sunny Chemicals Pvt. Ltd. During the search, it was seen that the assessee company was one of the beneficiaries of cash payments made by M/s Sunny Chemicals Pvt Ltd. Accordingly, proceedings under section 153C were initiated against the assessee and the case was centralized. Assessee filed return for A.Y. 2021-22 on 15.11.2021 declaring income of Rs. 2,73,580/-. Assessment was completed under section 143(3) vide order dated 28.12.2022 at returned income. Subsequently, Ld. PCIT issued a show-cause notice under section 263 on the ground that the assessment order was erroneous and prejudicial to the interest of revenue.…

Legal Issues

• 1. Whether the order passed by the Ld. Pr. Commissioner of Income-tax (CIT) Central Circle, under section 263 of the Income-tax Act, 1961 setting aside the assessment framed under section 143(3) by Ld. AO as erroneous and prejudicial to the interest of the Revenue is wholly unreasonable, uncalled for, bad in law and void ab-initio.
• 2. Whether the Ld. Pr. CIT erred in not passing a speaking order against the submissions of the appellant.
• 3. Whether the Ld. Pr. CIT erred in setting aside various issues without recording any prima facie finding on the merits of the issues.
• 4. Whether the order under section 263 is merely a 'change of opinion' and whether the order under section 143(3) passed by the Ld. AO does not represent an erroneous order.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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