9911796707
TMI Blog2025 (1) TMI 692X X X X Extracts X X X X X X X X Extracts X X X X ..... ,00,000/- either from Shri Himashu Verma or his alleged concerns namely, M/s. Broanze Star Techsoft Pvt.Ltd. and M/s. Royal Merage Financial Consultants Pvt.Ltd. In the light of the circumstances narrated on behalf of the assessee and in the wake of averments of the assessee duly recorded in 263 proceedings that no such entries have been received coupled with the affidavit of the assessee, we see no error in the re-assessment order. The order passed under s. 263 of the Act is thus quashed. Appeal of the assessee is allowed. - Shri Pradip Kumar Kedia, Accountant Member And Shri Vimal Kumar, Judicial Member For the Appellant : Shri Vivek Bansal, Adv., Shri Vishal Chechi, Adv. And Shri Sanjay Goel, Adv. For the Respondent : Ms. Anu Krishna A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rary to the decision of Hon'ble Supreme Court in the case of GKN Drive Shaft India Ltd. Vs ITO [2002] 125 taxman 963 and also decision of Delhi High Court in the case of Sabh Infrastructure Ltd. Vs ACIT [2017] 398 ITR 198(Delhi), therefore, power u/s 263 of the Act could not be invoked in respect of an invalid order passed in contravention of rules laid down in the aforementioned decisions. 4. That under the facts and circumstances of the case, Ld. PCIT has failed to appreciate that the assessment order dated 29-03-2022 passed by the Ld. AO was in violation of principles of natural justice as the AO has never provided the material/information in his possession to the assessee whereby it was claimed that assessee is beneficiary of Rs. 14 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt to fulfill the interest of justice. 7. That under the facts and circumstances of the case, Ld. PCIT has failed to appreciate that the grounds relating to the invalidity of assessment order being jurisdictional aspect, can be raised at any stage of the proceedings and if the assessment order is invalid on Jurisdictional ground, the subsequent action of invoking powers u/s 263 of the Act would also be an incompetent jurisdiction and for such proposition reliance before Ld. PCIT was placed on the decision in the case of Kanwar Singh Saini vs. High Court of Delhi (2012) 4 SCC 307. 8. That under the facts and circumstances of the case, the order dated 21-03-2024 passed u/s 263 of the Act by the Ld. PCIT is prayed to be vacated and or any othe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in reasons recorded was found to be untrue in the course of re-assessment proceedings. Hence while framing the re-assessment order, the allegations made towards bogus accommodation entries of INR 14,00,000/- was rightly dropped. The Ld. Pr. CIT in 263 proceedings however alleged that the AO has committed error in not making proper inquiry while departing from the reasons recorded qua INR 14,00,000/-. The Ld. Pr. CIT thus alleged that the AO has wrongly excluded INR 14,00,000/- for the purposes of re-assessment on account of bogus accommodation entries without proper inquiry. 3.2. In this backdrop, the Ld. Counsel for the assessee submitted that it was pointed out before the AO that alleged transactions of bogus accommodation entries with S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s fully cooperated in the reassessment proceedings and provided the requisite details. The Quasi-judicial function performed by the AO ought not have been set aside by the Ld. Pr. CIT in a mechanical manner without bringing any relevant fact before the assessee. 5. The assessee has categorically denied having received any credits from the two companies which are alleged to be accommodation entries providers. On being asked by the Bench, the assessee also furnished affidavit dated 17.12.2024 by the Tribunal to the effect that the assessee has not received alleged amount of INR 14,00,000/- either from Shri Himashu Verma or his alleged concerns namely, M/s. Broanze Star Techsoft Pvt.Ltd. and M/s. Royal Merage Financial Consultants Pvt.Ltd. 6. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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