Anumita Infrastructure Private Limited vs. PCIT-4

Parties Involved

Facts Summary

The assessee, Anumita Infrastructure Private Limited, filed its return of income for A.Y. 2017–18 declaring a total income of Rs. 19,370/-. The return was processed and a regular assessment was completed determining the same income. Subsequently, reassessment proceedings were initiated, and the Assessing Officer passed an order assessing the total income at Rs. 19,370/-. The Principal Commissioner of Income Tax (PCIT) observed that the reassessment order did not reflect any enquiry into alleged bogus penny stock transactions and accommodation entries. The PCIT set aside the reassessment order under section 263 of the Income-tax Act, 1961, directing a fresh assessment. The assessee appealed against this order, raising several grounds including the invalidity of the reassessment proceedings due to lack of proper sanction under section 151 of the Act.…

Legal Issues

• 1. Whether the reassessment proceedings suffer from a jurisdictional infirmity due to invalid sanction under section 151 of the Act.
• 2. Whether jurisdictional objections can be raised in an appeal arising from an order passed under section 263 of the Act.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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