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2020 (1) TMI 1408 - AT - Income TaxRevision u/s 263 - Bogus purchases u/s 69C - As per CIT AO should have made a disallowance of the entire fictitious purchases made through accommodation bills and not simply making a disallowance to the extent of 3% of the bogus purchases - HELD THAT:- As relying on case of Om Foregoing & Engineering P Ltd [2017 (12) TMI 1000 - ITAT KOLKATA] there is no error, in so far as it is prejudicial to the interest of the revenue in all these assessment orders so as to empower the ld. PCIT to invoke his power u/s 263 of the Act. There is no failure to make enquiry on the applicability of section 69C We hold that there is no error, in so far as it is prejudicial to the interest of the revenue in all these assessment orders so as to empower the ld. PCIT to invoke his power u/s 263 of the Act. There is no failure to make enquiry on the applicability of section 69C. In fact the view taken by the ld. Assessing Officer is supported by the judgment of the Hon’ble Calcutta High Court in the case of PCIT vs. M/s Subarna Rice Mill [2018 (8) TMI 1475 - CALCUTTA HIGH COURT] - Thus we hold that these orders passed u/s 263 of the Act are bad in law and all the orders passed by the PCIT u/s 263 are hereby quashed. - Decided in favour of assessee.
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