Manoj Kumar vs ITO

Parties Involved

Facts Summary

The assessee, Manoj Kumar, filed his return of income for the Assessment Year 2018-19 declaring a total income of INR 5,12,820/-. The case was re-opened by the Assessing Officer (AO) under section 148 of the Income Tax Act, 1961, due to the allegation that the assessee had accepted accommodation entries in the form of bogus purchases from M/s. Soni Textiles amounting to INR 11,47,500/-. The AO passed an assessment order under section 147 read with section 144B of the Act, assessing the income of the assessee at INR 16,60,320/- by making an addition of the alleged bogus purchases. The Principal Commissioner of Income Tax (PCIT) initiated revision proceedings under section 263 of the Act and passed an order setting aside the assessment order, directing the AO to pass a fresh order and invoking the provisions of section 15BBE by making an addition under section 69C of the Act towards the bogus purchases.…

Legal Issues

• 1. Whether the revision order passed by the PCIT is bad in law as the PCIT had no power to assume jurisdiction under section 263 of the IT Act to set aside the reassessment order passed under section 147/148/148A of the IT Act.
• 2. Whether the PCIT erred in invoking the powers under section 263 of the IT Act on the addition of Rs. 11,47,500/- made in the assessment order.
• 3. Whether the order of the PCIT is without jurisdiction considering the addition made in the assessment order.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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