Amit Shukla ORDER
N.K. Billaiya, Member (A)
1. This appeal by the assessee is preferred against the order of the Principal Commissioner of Income Tax [Appeals], Delhi - 7 dated 31.03.2021 framed u/s. 263 of the Income tax Act, 1961 [hereinafter referred to as 'The Act' for short] pertaining to Assessment Year 2016-17.
2. The sum and substance of the grievance of the assessee is that the Ld. PCIT erred in assuming jurisdiction u/s. 263 of the Act and further erred in holding the assessment and rectification order passed u/s. 143(3) and 154/143(3) of the Act as erroneous and prejudicial to the interest of the Revenue.
3. Representatives were heard at length. Case records carefully perused.
4. Briefly stated, the facts of the case are that for the year under consideration, the assessee filed its Return of Income Electronically on 17.10.2016 declaring total income of Rs. 4,52,68,500/- which was revised on 28.02.2018 showing same income. The return was selected for scrutiny through CASS. Accordingly, statutory notices were issued and served upon the assessee.
5. After perusing the details/documents and after making necessary enquiries, assessment was completed on 26.12.2018 at Rs. 4,55,45,110/-. Assuming the powers conferred upon him by provisions of section 263 of the Act, the PCIT issued notice u/s. 28.03.2021 which reads as under:
6. In light of the aforementioned reasons given by the ld. PCIT in his notice initiating proceedings u/s. 263 of the Act, let us now consider the notice issued u/s. 142(1) of the Act by the Assessing Officer during the course of scrutiny assessment proceedings.
7. Vide notice dated 10.10.2018, the Assessing Officer, inter alia, asked the assessee to furnish details of sundry creditors, trade payables, current liabilities alongwith complete postal address and PAN of such parties having outstanding balance of Rs. 5 lakhs or more with further details relating to interest payment and TDS thereon. This notice is placed at pages 9 to 11 of the paper book.
8. Vide reply dated 15.11.2018, the assessee inter alia, submitted the complete details as sought by the Assessing Officer. This detailed reply of the assessee is exhibited at pages 17 to 20 of the paper book. Confirmation of loan transaction with M/s. Sarvottam Securities Pvt. Ltd. and Upaj Leasing and Finance Co. Pvt. Ltd. were submitted which are placed at pages 47 to 49 of the paper book.
9. To further examine the loan transaction, the Assessing Officer issued notice u/s. 133(6) of the Act to M/s. Sarvottam Securities Pvt. Ltd. and M/s. Upaj Leasing and Finance Co. Pvt. Ltd. Such notices are placed at pages 322 to 361 of the paper bo........