Nalanda Engicon Pvt. Ltd. Vs. DCIT, Central Circle-2, Patna

Parties Involved

Facts Summary

Nalanda Engicon Pvt. Ltd., a private limited company engaged in construction, filed regular income returns under section 139 of the Income Tax Act, 1961. A search and seizure operation was conducted at the company's premises and residential premises of its director. Following the search, the Assessing Officer (AO) issued a notice under section 153A of the Act, to which the company responded by filing an income return on 12.02.2022. Detailed questionnaires were issued under section 142(1) of the Act, and the company provided comprehensive replies and evidence. The Principal Commissioner of Income Tax (PCIT) subsequently issued a show cause notice under section 263 of the Act, alleging that the assessment order was erroneous and prejudicial to the interest of revenue. The company argued that the AO had conducted a detailed enquiry and the PCIT had no jurisdiction to revise the assessment order without revising the approval under section 153D of the Act.…

Legal Issues

• 1. Whether the PCIT erred in assuming jurisdiction under section 263 of the Act by revising the assessment order without revising the approval under section 153D of the Act.
• 2. Whether the PCIT erred in holding the assessment order as erroneous and prejudicial to the interest of revenue when the AO had conducted a detailed enquiry.
• 3. Whether the show cause notice under section 263 of the Act deserves to be quashed as it was issued without revising the order of approval under section 153D of the Act.
• 4. Whether the assessment orders for the years 2014-15 to 2021-22 are invalid for not quoting the Document Identification Number (DIN).

Judgment Outcome

Decided in favour of Revenue.

Precedents Relied Upon

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