M/s. Nishan Inbuild Ltd. Vs. Pr. CIT

Parties Involved

Facts Summary

The assessee, M/s. Nishan Inbuild Ltd., appealed against the Principal Commissioner of Income Tax (Central) [PCIT] at Meerut’s revision direction under section 263 of the Income-tax Act, 1961. The PCIT had deemed the Assessing Officer’s section 153C r.w.s. 143(3) assessment as erroneous and prejudicial to the Revenue. The Assessing Officer had added section 68 unexplained cash credits and commission income @ 4% in the assessee’s hands on a 'protective' basis following a search on 11.10.2018 in M/s. PMC group of cases. The PCIT directed that these additions should have been made on a'substantive' basis. The assessee argued that a 'substantive' assessment had already been made against Sh. Raj Kumar Modi, a key person, and thus the 'protective' assessment against the assessee could not be deemed erroneous or prejudicial.…

Legal Issues

• 1. Whether the Assessing Officer’s addition of unexplained cash credits and commission income on a 'protective' basis was erroneous and prejudicial to the Revenue.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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