IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘G’: NEW DELHI BEFORE SHRI ANUBHAV SHARMA, JUDICIAL MEMBER AND SHRI MANISH AGARWAL, ACCOUNTANT MEMBER ITA No.2278/Del/2024 (ASSESSMENT YEAR 2013-14)

SSG Infratech Private PCIT, Limited, Delhi-7.

D-835, Zakir Nagar SO, Vs.

South East Delhi, New Friends Colony, New Delhi-110025.

PAN-AAJCS7616J (Appellant) (Respondent)

Assessee by Shri Pranshu Goel, CA &

Shri Aditya Gupta, Adv.

Department by Ms. Jaya Choudhary, CIT-DR Date of Hearing 13/02/2025 Date of Pronouncement 12/03/2025

O R D E R

PER MANISH AGARWAL, AM:

This appeal by the assessee is directed against the order of the Principal Commissioner of Income Tax-7, Delhi (hereinafter referred as “the PCIT”) having DIN No. ITBA/REV/F/REV5/2023- 24/1062624071(1), dt. 14.03.2024 for Assessment Year 2013-14, passed under section 263 of the Income Tax Act, 1961 (hereinafter referred as ‘the Act’).

2. Brief facts of the case are that the assessee is a private limited company and filed its return of income for impugned year u/s 139(1) of the Act on 30.11.2013 declaring income at Rs.6,67,65,750/-. Subsequently, the case was assessed u/s 143(3) of the Act at Returned Income. Thereafter, as a result of search & seizure operation u/s 132 of the Act, assessment u/s 143(3)/153A was completed on 28.12.2018 at a total income of Rs. 27,59,19,580/-. The said income was reduced to Rs.11,24,19,211/- in terms of the order of ld. CIT(A)-IV, Kanpur dt. 14.07.2021. Thereafter, on the basis of information received from DCIT, Central Circle-1(3), Mumbai that during the year, the assessee had entered into bogus accommodation entries/transactions to the tune of Rs 4,54,23,000/- with M/s Pandhe Group, reassessment proceedings were initiated by issue of notice u/s 148 on 12.03.2021. During the course of reassessment proceedings, AO vide query letter dated 11.11.2021 issued alongwith notice u/s 142(1) of the Act, asked the assessee to explain the nature of all transactions made during the year under consideration with entities comprising M/s Pandhe group alongwith ledger account & other supporting documents like ITR, duly signed confirmation, bank statements etc., said notice is available in paper book pages 18-23. In reply, the assessee vide letter dated 17.11.2021 stated that it had made no transactions with any entity of M/s Pandhey Group, reply is placed in paper book page 27. Then the AO vide show cause notice dt. 27.03.2022 observed that transactions as per information available with him matches with the transaction with M/s Patel Engineering Ltd. who is appearing as Sundry Creditors in assessee’s books and to whom total payment of Rs. 12,81,77,735/- was made during the year. Therefore, the assessee was show caused as to why this transaction of Rs. 12,81,77,735/- with M/s Patel Engineering Ltd. be not treated as bogus and unexplained. The assessee in reply vide 29.03.2022 had stated that M/s Patel Engineering Ltd. is doing job work at various work sites and in order to establish the genuineness of the transaction with the said party, assessee had filed copies of work order, Form-16, copy of ledger account with bank statement and submit that no adverse inference is called for as all the transactions were genuine transactions. All these correspondences are available in the paper book pages 93-116. After considering the submissions made by the assessee, the Assessing Officer vide order dt. 30.03.2022 passed u/s 143(3)/147 of the Act has accepted the contention of the assessee and assessed at the income at Rs.11,24,19,211/- as remained after the order of ld. CIT(A), Kanpur dt. 14.07.2021. Thereafter, the ld. PCIT, Delhi -7, after considering the replies of the assessee, vide impugned order dated 14.03.2024, held the order passed u/s 143(3)/147 of the Act as erroneous and prejudicial to the interest of the Revenue and direct the Assessing Officer to pass a fresh order modifying the assessment order after making proper enquiry and verification.

3. Against the said order of