M/s. Akshar Developers Vs Pr. Commissioner of Income Tax

Parties Involved

Facts Summary

The assessee, M/s. Akshar Developers, filed an income return on 31/10/2018 declaring total income of Rs.94,90,890/-. The return was selected for scrutiny, and statutory notices were issued. The assessee provided details of unsecured loans, deposits, and loans/advances given. A showcause notice was issued on 11/06/2021 and another on 06/09/2021. The assessee filed a detailed reply. The assessment order was framed on 29/09/2021, adding Rs.6,31,002/- under section 40(a)(ia) and Rs.1,00,00,000/- as unexplained credit under section 115BBE. The Principal Commissioner of Income Tax (PCIT) issued a notice under section 263 of the Act, which the assessee appealed against.…

Legal Issues

• 1. Whether the PCIT erred in assuming jurisdiction under section 263 of the Act?
• 2. Whether the assessment order is erroneous and prejudicial to the interest of the Revenue?

Judgment Outcome

Decided in favour of Revenue.

Precedents Relied Upon

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