This appeal has been preferred by the assessee against the order dated 16/03/2021 passed by the Learned Principal Commissioner of Income-tax, Faridabad [in short 'he Learned PCIT'] under section 263 of the Income-tax Act 1961 (in short 'the Act') for assessment year 2015-16.
IN THE INCOME TAX APPELLATE TRIBUNAL,
DELHI BENCH: ‘E’ NEW DELHI
BEFORE SHRI KUL BHARAT, JUDICIAL MEMBER
SHRI O.P. KANT, ACCOUNTANT MEMBER
[Through Video Conferencing]
Assessment Year: 2015-16
M/s. NKB Infrastructure (P)
Behind Old PNB Building,
Appellant by Sh. Gautam Jain, Adv.
Sh. Lalit Mohan, CA
Respondent by Ms. Pramita M. Biswas, CIT(DR)
Date of hearing 12.07.2021
Date of pronouncement 27.07.2021
This appeal has been preferred by the assessee against the order dated 16/03/2021 passed by the Learned Principal Commissioner of Income-tax, Faridabad [in short ‘the Learned PCIT’] under section 263 of the Income-tax Act 1961 (in short ‘the Act’) for assessment year 2015-16.
2. Briefly stated facts of the case are that during the year under consideration, the assessee company was engaged in the business of manufacturing of Grit, Stone dust and GSB, carries supply of road construction work etc. The assessee filed return of income on 31/10/2015, declaring loss of ? 2,83,67,943/-. Subsequently, the assessee revised its return of income on23/06/2016 reducing the loss to ? 1,59,41,161/-.
3. Before us, the parties appeared through Video Conferencing facility. The assessee filed a paper-book containing pages 1 to276.
4. The Hon’ble Delhi High Court in the case of ETT Ltd. Vs CIT (supra) that Learned CIT or PCIT must conduct prima-facie inquiries and come to a conclusion that assessment order is erroneous. Without concluding enquiries to hold that the order is erroneous, such action of the Learned CIT/PCIT is not justified.The relevant finding of the Hon’ble High Court is reproduced.
5. On the issue of the unsecured loans, the assessee filed all the confirmations of unsecured loans before the Learned PCIT and detailed in respect of addition to loan during the year under consideration. Though the Learned PCIT has mentioned that no bank statement or Copy of IT return has been filed in respect of the lenders and therefore directed the Assessing Officer to verify and take appropriate action.
6. In the result, the appeal of the assessee is allowed.
Order pronounced in the open court on 27th July, 2021.