SHRI BARFANI DADAJI BUILDCON,H L PATEL HOUSE vs. ORDER PASSED BY, PCIT(CENTRAL), AHMEDABAD. JURS. AO, DCIT, CENT.CIR,2(3), AHMEDABAD., AAYAKAR BHAWAN

ITA 2083/AHD/2026Status: DisposedITAT Ahmedabad10 September 2026AY 2022-236 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the PCIT erred in invoking Section 263. Following the Gujarat High Court's decision, it was found that the Assessing Officer lacked jurisdiction to initiate penalty proceedings under Section 271D for assessment orders passed before April 1, 2025.

What were the facts?

The PCIT invoked Section 263 of the Income Tax Act, 1961, to revise an assessment order, holding it erroneous and prejudicial to revenue for not initiating penalty proceedings under Section 271D. The assessee appealed this revision order.

What were the issues?

Whether the failure of the AO to initiate penalty proceedings under Section 271D makes the assessment order erroneous and prejudicial to revenue, warranting revision under Section 263, especially when the AO lacked jurisdiction to impose such penalty at the time of assessment.

Which sections of the Income-tax Act were involved?

Section 263,Section 271D,Section 269SS,Section 143(3)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, AHMEDABAD BENCHES, AHMEDABAD

Before: DR. BRR KUMAR & SHRI SANJAY KUMAR

Pronounced: 10.09.2026

PER SANJAY KUMAR, JUDICIAL MEMBER:

- This appeal has been filed by the Assessee against the order dated 26.03.2026 passed by the Income Tax Department, PCIT (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) for Assessment Year 2022-23. 2. The Assessee has raised followi

The order continues below.

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