M/s Qutone Ceramic Pvt. Ltd. vs. Principal Commissioner of Income-tax

Parties Involved

Facts Summary

M/s Qutone Ceramic Pvt. Ltd. (the assessee) filed a scheme of arrangement for the merger of its business undertaking with the National Company Law Tribunal (NCLT), Ahmedabad. The assessee filed its return of income for the assessment year 2016-17, reporting a loss. The assessing officer passed an assessment order under section 143(3) of the Income Tax Act, 1961, accepting the returned loss. The Principal Commissioner of Income-tax (PCIT) set aside the assessment order under section 263 of the Act, finding it erroneous and prejudicial to the interest of the revenue. The assessee appealed against the order of the PCIT.…

Legal Issues

• 1. Whether the assessing officer erred in accepting the share capital investment and unsecured loans as genuine without proper inquiry.
• 2. Whether the assessee failed to prove the source of the amount invested in share capital.

Judgment Outcome

Decided in favour of Partly Assessee / Partly Revenue.

Precedents Relied Upon

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