IN THE INCOME TAX APPELLATE TRIBUNAL INDORE BENCH, INDORE BEFORE SH. BHAGIRATH MAL BIYANI, ACCOUNTANT MEMBER AND SH. UDAYAN DASGUPTA, JUDICIAL MEMBER I.T.A. No. 371/Ind/2024 Assessment Year: 2018-19 Infobeans Technologies Ltd., Vs. The Principal Commissioner of

1^st and 2^nd Floor, Crystal IT Park, Income Tax, Indore-1, Indore, Indore, (M. P.), 452001 M.P.

[PAN: AACCI5864K]

(Respondent)

(Appellant)

Appellant by : S/Sh.SN Agrawal & Ritesh Jain, ARs Respondent by : Sh. Ram Kumar Yadav,CIT-DR Date of Hearing : 30.01.2025 Date of Pronouncement : 29.04.2025

ORDER

Per Udayan Dasgupta, J.M.:

This appeal is filed by the assessee against the order of the ld. PCIT-1, Indore passed u/s 263 of the Income Tax Act,1961 (henceforth the Act) dated 27.03.2024 which has emanated from the order of the Assessing Officer, NEAC, Delhi passed u/s 143(3) dated15.04.2021.

2. The grounds of appeal taken by the assessee in Form 36 are as follows:

1. That on the facts and in the circumstances of the case and in law, the Ld Pr. CIT erred in setting-aside the order as passed by the assessing officer under section 143(3) r.w.s 143(3A) and 143(3B) of the Income-tax Act, 1961 by invoking the provisions of section 263 of the Act even when the order as passed by the assessing officer wasneithererroneous nor prejudicialto theinterestsof therevenue.

2. That on the facts and in the circumstances of the case and in law, the Ld Pr. CIT erred in setting-aside the order as passed by the assessing officer by invoking the provisions of section 263 of the Income-tax Act, 1961 for re-examining the issue of disallowance of expenses under section 14A of the Act even when the said issue was outside the purview of reasons for which the case of the appellant was selected for scrutiny for Assessment Year 2018-19and therefore, the assessing officer has rightly passed assessment order under section 143(3) r.w.s 143(3A) and 143(3B) of the Act after examining the issues for which the case of the appellant was selected for scrutiny.

3. That on the facts and in the circumstances of the case and in law, the Ld Pr. CIT erred in setting aside the order as passed by the assessing officer by invoking the provisions of section 263 of the Income-tax Act. 1961 even when the assessment order was passed by the assessing officer under section 143(3) rus 143(31) and 143(3B) of the Act after conducting necessary enquiries and after due application of mind.

4. That on the facts and in the circumstances of the case and in law, the Ld Pr. CIT erred in setting aside the order as passed by the assessing officer by invoking the provisions of section 263 of the Income-tax Act, 1961 for re-examining the issue of disallowance of expenses under section 14A of the Act even when the assessing officer after considering the tax audit report filed by the appellant during the course of assessment proceedings wherein the Auditor has duly stated that disallowance under section 14A of the Act was Nil and after proper examination of records & after due application of mind has taken one of the plausible view and has not made any disallowance under section 14Aofthe Act

5. That on the facts and in the circumstances of the case and in law, the Ld Pr. CIT erred issuing show-cause notice dated 14-02-2024 under section 263 of the Act for setting aside the order as passed by the assessing officer for re-examining the issue of disallowance of expenses under section 14A of the Act during the course of pendency of rectification proceedings under section 154/155 of the Act in respect of the said assessment order.

6. That on the facts and in the circumstances of the case and in law, the Ld Pr. CIT erred in setting-aside the order as passed by the assessing officer by invoking the provisions of section 263 of the Income-tax Act, 1961 for re-examining, the issue of disallowance of expenses under section 14A of the Act even when the assessing officer after proper examination of records and due application of mind has not recorded satisfaction und