Viiking Media and Entertainment Pvt. Ltd. vs. DCIT-Central Circle (2)(2)

Parties Involved

Facts Summary

The case involves revisionary orders passed by the Learned Principal Commissioner of Income Tax (Ld. PCIT) under Section 263 of the Income Tax Act, 1961, for assessment years 2017-18 to 2021-22. The assessee, Viiking Media and Entertainment Pvt. Ltd., challenged the jurisdiction of the Ld. PCIT in setting aside the assessment orders. A search and seizure action was conducted under Section 132(1) of the Act, and a notice under Section 153A was issued. The assessee filed its return of income declaring total income of Rs. Nil. The assessment was completed under Section 143(3) read with Section 153A, determining total income at Rs. 5,99,74,390. Subsequently, the Ld. PCIT observed a change in shareholding of more than 50% and issued a notice under Section 263 to disallow the carry forward and set off of losses. The assessee argued that the change in shareholding was among relatives and by way of gift, and thus Section 79 of the Act was not applicable.…

Legal Issues

• 1. Whether the Ld. PCIT erred in initiating revision proceedings under Section 263 of the Income Tax Act, 1961.
• 2. Whether the Ld. PCIT erred in invoking the revisionary power under Section 263 without appreciating the AO's completion of the assessment.

Judgment Outcome

Decided in favour of Revenue.

Precedents Relied Upon

Similar Judgements

• S.K.N Propmart Pvt. Ltd. Vs. Pr. CIT

  Delhi Bench ‘B’ New Delhi benchAY 2014-15Allowed

• Bhavna Impex vs. Principal Commissioner of Income Tax

  Ahmedabad bench

• Vijay Raaz Vs. Ward 16(1)(5), Mumbai

• Shri Rupesh Agarwal Vs. Pr. CIT, Ghaziabad

  Delhi Bench benchAY 2018-19Partly Allowed

• Unique Mercantile India Ltd. vs. Principal Commissioner of Income Tax

  Ahmedabad bench

• Golden Sandhar Mills Ltd vs. ITO

  Delhi Bench benchAY 2020-21Allowed