KAUSHIK RATILAL SHAH,AHMEDABAD vs. PR. CIT, CENTRAL, AHMEDABAD, AHMEDABAD

ITA 2187/AHD/2026Status: DisposedITAT Ahmedabad22 September 2026AY 2016-20176 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the amount in question was indeed incurred and taxed in subsequent assessment years (2017-18 and 2018-19). Therefore, no further addition was required for AY 2016-17, and the PCIT's order under Section 263 was unjustified.

What were the facts?

The PCIT invoked Section 263, believing the AO failed to examine an alleged unexplained investment of Rs. 39,01,500/- for AY 2016-17. The assessee contended this amount pertained to cash expenditure for property construction in AYs 2017-18 and 2018-19, which were already taxed.

What were the issues?

Whether the PCIT was justified in invoking Section 263 when the alleged unexplained investment was already accounted for and taxed in subsequent assessment years.

Which sections of the Income-tax Act were involved?

Section 263,Section 69B,Section 115BBE,Section 147,Section 143(3)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “B” BENCH, AHMEDABAD

For Appellant: Shri Dhinal Shah, AR
For Respondent: Shri Ram Tiwari, CIT-DR
Hearing: 22.07.2026Pronounced: 22.09.2026

PER DR. B.R.R. KUMAR, VICE-PRESIDENT:

-

This appeal has been filed by the Assessee against the order dated 26.03.2026 passed by the Learned Principal Commissioner of Income Tax (Central), Ahmedabad (hereinafter referred to as ‘Ld. PCIT’ in short), under Section 263 of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’ in short) relevant to the AY 2016-17. 2. The Assessee has raised following grounds of appeal:-

1.

The learned Principal Commissioner of Income tax, Central, Ahmedabad, erred in assuming juri iction under Section 263 inasmuch as the condition laid down under Section 263 to exercise juri iction does not satisfy in the case of the appellant.

2.

T

The order continues below.

Read the full judgment

A free account opens 10 full judgments a month. Re-reading one you have already opened does not count again.

Create a free accountSign in

See plans and prices

The summary, the parties, the sections and the citations above are open to everyone and always will be. Only the text of the order and the PDF are metered.

More judgments on Section 263

All 13,616 judgments and leading authorities on Section 263 →

Recent GST High Court judgments

Search GST case law →