MOHAMMED AFZAL & BROS,AHMEDABAD vs. DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE 1(2), AHMEDABAD, AHMEDABAD

ITA 1159/AHD/2026Status: DisposedITAT Ahmedabad22 September 2026AY 2022-2315 pages
AI SummaryPartly Allowed

What were the facts?

The PCIT invoked Section 263 to revise an assessment order passed by the AO, citing lack of inquiry on issues like sundry creditors/debtors, fixed asset transfer, and cash deposits. The assessee contended that the AO had conducted sufficient inquiry and that the assessment was not erroneous or prejudicial to revenue.

What did the Tribunal hold?

The Tribunal held that while the AO had conducted relevant inquiry on the transfer of fixed assets, the PCIT's action regarding cash deposits was justified due to insufficient verification by the AO. The revision order was set aside for other issues.

What were the issues?

Whether the PCIT correctly exercised revisionary powers under Section 263 when the AO's assessment was allegedly erroneous and prejudicial to revenue due to lack of inquiry on specific issues.

Which sections of the Income-tax Act were involved?

Section 263,Section 143(3),Section 50

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, D” BENCH, AHMEDABAD

Per Rahul Chaudhary, Judicial Member:

1.

The present appeal preferred by the Assessee is directed against the Order, dated 25/03/2026, passed by the Learned Principal Commissioner of Income Tax (Central) - Ahmedabad [hereinafter referred to as the ‘PCIT’] under Section 263 of Income-Tax Act, 1961 (for short ‘the Act’) whereby the Assessment Order, dated 23/02/2024, of the Act for the Assessment Year 2022-2023 was set aside with the directions to the Assessing Officer to frame fresh assessment order after necessary examination, verification and inquiry.

2.

The Assessee

The order continues below.

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