GURDEV SINGH,SBS NAGAR vs. THE PRINCIPAL COMMISSIONER OF INCOME TAX, JALANDHAR

ITA 308/ASR/2016Status: DisposedITAT Amritsar13 May 2026AY 2011-1219 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that while the inquiry by the AO might have been inadequate, it was not a complete lack of inquiry. Since the amended provisions of Section 263 (Explanation 2) were not applicable to the assessment year in question, the PCIT erred in invoking Section 263.

What were the facts?

The assessee, an agriculturist, declared agricultural income and income from a harvesting combine. The PCIT initiated proceedings under Section 263, alleging lack of independent inquiry by the AO regarding cash flow, bank withdrawals, sale proceeds of various items, and friendly loans.

What were the issues?

Whether the PCIT correctly invoked Section 263 for alleged inadequate inquiry by the AO, considering the assessment year and the distinction between lack of inquiry and inadequate inquiry.

Which sections of the Income-tax Act were involved?

Section 263,Section 143(3)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, AMRITSAR BENCH, AMRITSAR.

Before: SH. UDAYAN DASGUPTA & SH. KRINWANT SAHAY

For Appellant: CA. Sh. Sunil Kumar Yadav, CIT. DR
Hearing: 19.02.2026Pronounced: 13.05.2026

Heard together (2 matters)

I.T.A. No. 308/Asr/2016
C.O. 15/Asr/2016

Read from the judgment's own cause title. This page is filed under one of them.

Per: Udayan Dasgupta, J.M.: This appeal is filed by the assessee against the order of ld. PCIT, Jalandhar, passed u/s 263 of the IT Act, 1961, dated 31.03.2016, which has emanated from the order of AO, Nawanshahr passed u/s 143(3) of the Act, dated 31.03.2014. 2. The grounds of the appeal in Form 36 which are as under: 2 And C.O. 15/Asr/2016

“1. That the Notice issued U/s.263 and the order passed under Sub-Section (1) of Section 263 are illegal, bad in law and without juri iction.

2.

That the Ld. Principal Commissioner of Income Tax, Jalandhar-I, has in view of the facts and circumstances of the case,

The order continues below.

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