NIKHAT FATMA,PURNEA vs. ACIT CENTRAL CIRCLE 2, PATNA

ITA 303/PAT/2026Status: DisposedITAT Patna12 August 2026AY 2022-202313 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the AO's failure to invoke correct sections (like 69B and 115BBE) and initiate penalty proceedings under the appropriate section rendered the assessment order erroneous and prejudicial to revenue. The PCIT's order setting aside the assessment for fresh inquiry was upheld.

What were the facts?

During a search, the assessee disclosed a cash payment of ₹94 lakhs for property purchase. The Assessing Officer (AO) added this as undisclosed investment. The Principal Commissioner of Income Tax (PCIT) initiated revision proceedings, finding the AO's order erroneous and prejudicial to revenue.

What were the issues?

Whether the AO's assessment order was erroneous and prejudicial to the interest of revenue due to incorrect invocation of sections and non-initiation of penalty proceedings. Whether the PCIT correctly exercised revisional powers under Section 263.

Which sections of the Income-tax Act were involved?

Section 263,Section 143(3),Section 69B,Section 115BBE,Section 271AAC

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, PATNA ‘DB’ BENCH AT KOLKATA

Before: SHRI PRADIP KUMAR CHOUBEY & SHRI RAKESH MISHRA

PER RAKESH MISHRA, ACCOUNTANT MEMBER:

This appeal filed by the assessee is against the order of the Principal Commissioner of Income Tax (Central), Patna [hereinafter referred to as Ld. 'PCIT'] passed u/s 263 of the Income Tax Act, 1961 (hereinafter referred to as 'the Act') for AY 2022-23 dated 30.03.2026. 2. The assessee is in appeal before the Tribunal raising the following grounds of appeal:

"

1.

For that the Ld. PCIT Central erred on facts and in law in concluding that A.O. had failed to make requisite inquiry regarding the amount of referral fees of Rs.94 lakhs disclosed by the appellant in the Statement on Oath recorded at the time of search as Professional Income which was inquired

The order continues below.

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