{"id":63006,"date":"2026-07-30T16:29:11","date_gmt":"2026-07-30T10:59:11","guid":{"rendered":"https:\/\/itatonline.org\/digest\/harmony-yarns-p-ltd-v-pr-cit-2025-131-itr-478-surattrib\/"},"modified":"2026-07-30T16:29:11","modified_gmt":"2026-07-30T10:59:11","slug":"harmony-yarns-p-ltd-v-pr-cit-2025-131-itr-478-surattrib","status":"publish","type":"post","link":"https:\/\/itatonline.org\/digest\/harmony-yarns-p-ltd-v-pr-cit-2025-131-itr-478-surattrib\/","title":{"rendered":"Harmony Yarns P. Ltd. v. Pr. CIT (2025) 131 ITR 478 (Surat)(Trib.)"},"content":{"rendered":"<p>The case of the Assessee<span style=\"text-decoration: line-through\">\u2019s<\/span> <span style=\"text-decoration: line-through\">case <\/span>was selected for complete scrutiny to verify the issue of transactions with company whose registration has been cancelled by MCA. The assessment order was passed accepting the returned income. Thereafter, PCIT invoked the jurisdiction under section 263 of the Act. On perusal of the records, the PCIT observed that, the Assessee has taken unsecured loan from Alliance Commodities Ltd during the year under consideration. The PCIT noticed that, on the website of MCA, the status of the said company is shown as \u2018strike off\u2019. The PCIT held that, the Assessee failed to establish the genuineness of loan transaction. Thus, the same needs to be added under section 263 of the Act. Further, the PCIT noticed from the Form 3CD-Col 20(b) that the PF contribution received from employees of Rs.14,796\/-for which due date for payment was 15.06.2017, however, the same is made on 23.06.2017. As per provisions of section 36(1)(va), the contribution of the employees paid after the due date and the amount of Rs.14,796\/-was required to be disallowed. Thus, the PCIT held that, the AO should have disallowed the claim under section 36(1)(va) of the Act. The revision order was passed holding the assessment order erroneous and prejudicial to the interest of the revenue. On appeal, the ITAT observed that, during the course of assessment proceedings, the AO vide notice under section142(1) of the Act asked the specific query with respect to loan transaction with Alliance Commodities Ltd. In response to the same, the Assessee furnished all the details like ledger account, loan confirmation. The AO also examined certificate of incorporation and <span style=\"text-decoration: line-through\">also examined<\/span> the genuineness of the transaction. Thus, the ITAT held that the AO made adequate inquiry pertaining to the said loan transaction and then passed the assessment order. Thus, the assessment order cannot be held as erroneous and prejudicial to the interest of the revenue. Further, with respect to the issue of PF under section 36(1)(Va) is concerned, the ITAT held that, the said issue is covered against the Assessee by the decision of supreme court in the case of Checkmate Services Pvt. Ltd. [Civil Appeal No.2833 of 2016 (SC). Thus, the appeal of the Assessee was partly allowed by the ITAT. [AY. 2018-19]\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"<p>S. 263: Commissioner-Revision of orders prejudicial to revenue-<br \/>\n-Assessment was completed after duly examining the issue of unsecured loan-Invocation of revision jurisdiction to verify the same issue is not permissible.[S.36(1)(va), 143(3)]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[21],"tags":[],"class_list":["post-63006","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-goe","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/63006","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=63006"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/63006\/revisions"}],"predecessor-version":[{"id":63007,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/63006\/revisions\/63007"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=63006"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=63006"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=63006"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}