IN THE INCOME TAX APPELLATE TRIBUNAL DELHI “G” BENCH: NEW DELHI BEFORE SHRI ANUBHAV SHARMA, JUDICIAL MEMBER &

SHRI MANISH AGARWAL, ACCOUNTANT MEMBER [Assessment Year : 2014-15 & 2015-16]

Surya Roshni Limited, vs Pr.CIT-7, 2nd Floor, Padma Tower-1, Delhi Rajendra Place, New Delhi-110008. PAN-AAACS3558C APPELLANT RESPONDENT Appellant by Shri Akshat Jain, CA &

Shri Rajat Jain, CA Respondent by Shri Mahesh Kumar, CIT DR Date of Hearing 04.06.2025 Date of Pronouncement 28.08.2025 ORDER PER MANISH AGARWAL, AM :

The captioned appeals are filed by the assessee against two separate orders, both dated 26.03.2024 passed by Ld. Pr. Commissioner of Income Tax, Delhi [“Ld. Pr. CIT”] passed u/s 263 of the Income Tax Act, 1961 [“the Act”] arising from the different assessment orders dated 14.03.2022 and 11.03.2022 passed u/s 147 r.w.s. 143(3) of the Act for Assessment Years 2014-15 & 2015-

16 respectively.

2. At the time of hearing, it was stated that the issues involved for Assessment Years 2014-15 to 2015-16 are common, interlinked and identical. Hence, both appeals have been heard together and accordingly, adjudicated by this common order.

ITA No.1445/Del/2024 [Assessment Year 2014-15]

3. Brief facts of the case are that the assessee is a public limited company and filed its return of income on 29.11.2014, declaring total income of NIL after claiming set off of brought forward losses/ unabsorbed depreciation. The assessee is engaged in the business of manufacturing of steel tubes, pipes, cold rolled strips, different variety of lamps and allied items and the assessment was completed u/s 143(3) vide order dated 09.12.2016 on return of income. During the year under appeal, in terms of the order of National Law Tribunal, Chandigarh dated 11.12.2017, the company Surya Global Steel Tubes Ltd. was merged with Surya Roshni Ltd. In the case of Surya Global Steel Tubes Ltd., the return was filed on 29.11.2014, declaring NIL income and same was assessed u/s 143(3) of the Act by making addition of INR 20,26,63,720/-. As a result of the merger with the assessee company, the proceedings u/s 147 of the Act in the case of assessee company were initiated on the basis of the information that M/s. Surya Global Steel Tubes Ltd. had received share capital and unsecured loans from various companies which includes Diwakar Marketing Pvt. Ltd. from whom the share capital was received and Rackson Motors Pvt. Ltd. from whom loan was received which as per the public domain, it is found that these are shell companies and therefore, the amount received from this company was held as concealed income. Accordingly, the case of the assessee was re-opened by issue of notice u/s 148 of the Act. The re-assessment order was passed u/s 147/143(3) of the Act on 11.03.2022 wherein income declared and assessed u/s 143(3) was accepted and no addition was made. Thereafter, Ld. Pr. CIT, Delhi-7 in terms of its order dated 26.03.2024 had passed the order u/s 263 of the Act wherein re-assessment order passed u/s 147/143(3) is held as erroneous and pre-judicial to the interest of the Revenue and is set aside by Ld. Pr. CIT who direct the AO to pass a fresh order in accordance with law after making proper inquiry and verification and after providing due opportunity to the assessee.

4. Against the order of Ld.CIT(A), the assessee has raised following grounds of appeal:-

1. “That on the facts and circumstances of the case, the order passed by the learned Pr. Commissioner of Income Tax (CIT), Delhi - 7 under Section 263 of the Act is bad, both in the eye of law and on facts.

2. That on the facts and circumstances of the case, the order passed by the learned Pr. CIT assuming jurisdiction under section 263 is bad in law in the absence of twin conditions of the order passed by the A.O. being erroneous as well as prejudicial to the interest of the Revenue, not satisfied.

3. That on the facts and circumstances of the case, the learned Pr. CIT has erred both on facts and in law in ignoring the fact that the