INDIAN OVERSEAS BANK,CHENNAI vs. PCIT, CHENNAI

ITA 1494/CHNY/2026Status: DisposedITAT Chennai23 July 2026AY 2022-235 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the AO had taken a plausible view and the assessee's treatment of bad debts recovered and interest accrued was consistent. Therefore, the PCIT's order under Section 263 was erroneous and prejudicial to the assessee's interest.

What were the facts?

The Principal Commissioner of Income Tax (PCIT) invoked Section 263 to revise the Assessing Officer's (AO) order. The PCIT questioned the taxability of bad debts recovered and the treatment of interest accrued but not due on securities.

What were the issues?

Whether the PCIT erred in invoking Section 263 without establishing the AO's order as erroneous and prejudicial, and whether the taxability of bad debts recovered and interest accrued was correctly handled by the AO.

Which sections of the Income-tax Act were involved?

Section 263,Section 143(3),Section 41(4),Section 36(1)(vii)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘B’ BENCH: CHENNAI

Before: HONOURABLE GEORGE GEORGE K. & SHRI GAGAN GOYAL

Hearing: 01.07.2026Pronounced: 23.07.2026

PER GAGAN GOYAL, AM: This is an appeal preferred by the assessee against the order of Ld. PCIT, (hereinafter referred as the ‘Ld. PCIT’), Chennai-4 dated 03.03.2026 for the Assessment Year (hereinafter referred as the ‘AY’) 2022-23. GROUNDS OF APPEAL

1.

On the facts and circumstances of the case and in law, the Id. PCIT erred in invoking the provisions of section 2

The order continues below.

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