Question 1

What are the key legal issues in M/s. Garden View Foods Pvt. Ltd. Vs. Pr. CIT?

Accepted Answer

1. Validity of assumption of revision jurisdiction under section 263 of the Income-tax Act by the Principal Commissioner of Income Tax.

Question 2

What are the facts of M/s. Garden View Foods Pvt. Ltd. Vs. Pr. CIT?

Accepted Answer

The appeals in ITA No. 3225 & 3226/Del/2017 for Assessment Years 2011-12 and 2012-13 arise out of the order of the Commissioner of Income Tax (Appeals)-3, New Delhi dated 21.03.2017 against the order of assessment passed under sections 153A/143(3) of the Income-tax Act, 1961 dated 22.02.2013 by the Assessing Officer, DCIT, Central Circle-28, New Delhi. The assessee company, M/s. Garden View Foods Pvt. Ltd., received share capital of Rs. 14,70,000/- and share premium of Rs. 1,32,30,000/- totaling to Rs. 1,45,00,000/- from 30 investor companies. The Assessing Officer sought to examine the veracity of these receipts. Despite notices under section 142(1) of the Act, the assessee did not provide any details and merely asked for copies of seized documents. The Assessing Officer concluded that the assessee company was a conduit company and did not add the receipts to its income. However, the Principal Commissioner of Income Tax revised this assessment under section 263 of the Act, treating the order as erroneous and prejudicial to the revenue's interest.

M/s. Garden View Foods Pvt. Ltd. Vs. Pr. CIT

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