SANAY GOYAL,DARJEELING vs. D.C.I.T., CC - 4(2), KOLKATA

ITA 1843/KOL/2026Status: DisposedITAT Kolkata16 September 2026AY 2017-201816 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that since no incriminating material was found regarding transportation charges during the search, the AO could not have examined this issue under Explanation 2 to Section 148. Therefore, the PCIT wrongly exercised jurisdiction under Section 263.

What were the facts?

The PCIT initiated revision proceedings under Section 263 against the assessee's assessment order. The PCIT believed the Assessing Officer (AO) failed to examine transportation charges, which were substantial, and that tax deductions were not made as required by Section 194C, making the assessment erroneous and prejudicial to revenue.

What were the issues?

Whether the PCIT correctly invoked Section 263 when the AO completed the assessment based on the returned income due to a lack of incriminating material found during a search, as required for reassessment under Explanation 2 to Section 148.

Which sections of the Income-tax Act were involved?

Section 263,Section 147,Section 148,Section 194C

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “D” BENCH, KOLKATA

For Appellant: Shri S.K. Tulsiyan&, Ms. Sonam Bajoria, ARs
For Respondent: Shri Sanat Kumar Raha, DR
Hearing: 04.08.2026Pronounced: 16.09.2026

Per Rajesh Kumar, AM:

This is an appeal preferred by the assessee against the revisionary order passed by the ld. Pr. Commissioner of Income Tax (Central), Kolkata-2, (hereinafter referred to as the “Ld. PCIT”] dated 18.03.2026 for the AY 2017-18. 2. The only issue raised in the various grounds of appeal is against the invalid exercise of juri iction by the Ld. PCIT u/s 263 of the Act, thereby setting aside the assessment framed u/ 147/ 143(3) of the Act dated 12.07.2023, on the ground of being erroneous and prejudicial to the interest of the Revenue. Sanjay Goyal; A.Y. 2017-18

3.

The facts in brief are that the assessee filed the return of income on 29.102.017, d

The order continues below.

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