Shree Neelkanth Quarry Works LLP vs. The PCIT

Parties Involved

Facts Summary

The assessee, Shree Neelkanth Quarry Works LLP, was incorporated on 22.06.2016, after the assessment year 2015-16. The LLP was formed by converting a partnership firm with the same name. The LLP filed its return of income for the assessment year 2015-16 on 30.09.2015, declaring a total income of Rs.57,43,190/-. Subsequently, information was received that the firm had transactions of Rs.1,55,55,450/- with M/s Maruti Enterprises, which provided accommodation entries. The Assessing Officer (AO) initiated proceedings under section 147 of the Income-tax Act, 1961, and assessed the income at Rs. 'Nil'. The Principal Commissioner of Income Tax (PCIT) set aside the assessment order and directed the AO to verify the alleged accommodation entry. The LLP appealed against the PCIT's order.…

Legal Issues

• 1. Whether the revision u/s 263 of the Act is valid?
• 2. Whether the reopening of assessment u/s 147 is valid?
• 3. Whether the assessment order u/s 147 r.w.s. 144 & 144B of the Act is valid?

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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