Shri Narinder Singh vs. PCIT-1

Parties Involved

Facts Summary

By way of this appeal, the assessee assails invocation of revisionary jurisdiction u/s 263 by Ld. Pr. Commissioner of Income Tax, Chandigarh-1 (Pr. CIT) for the Assessment Year (AY) 2021-22 vide impugned order dated 08.03.2025 proposing revision of an assessment as framed by Ld. Assessing Officer [AO] u/s 143(3) r.w.s. 144B of the Act on 27.12.2022. The assessee, being proprietor of M/s Ankit Alloys, carried on trading of iron and steel. The assessee declared income of Rs.4.98 Lacs which was scrutinized. Though notices u/s 142(1) were issued by Ld. AO, the assessee substantially remained non-compliant during assessment proceedings. The Ld. AO doubted the purchases made by the assessee and also raised various other issues during assessment proceedings. The Net profit rate was declared at 0.24% of the turnover which was held to be low. At sub-clause (g) of para 4.6.3, Ld. AO observed that the assessee failed to submit all relevant documents in support of his claim of purchases. Based on material on record, the assessment was to be concluded by making addition of Rs.838.46 Lacs on account of bogus purchases. However, at para 4.6.4 of the assessment order, AO concluded the assessment by adding 0.5% of profit on assessee’s turnover by invoking Sec.144 as per material available on record. The same resulted into an addition of Rs.10.26 Lacs on the returned income of Rs.4.98 Lacs. The total income was finally determined at Rs.15.25 Lacs. Subsequently, Ld. Pr. CIT proposed revision of…

Legal Issues

• 1. Whether the revisionary order by the Principal Commissioner of Income Tax is valid?
• 2. Whether the assessment attained finality under the Vivad Se Vishwas Scheme?

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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