VENKY STEELS PRIVATE LIMITED,PATNA vs. ASSESSMENT UNIT, INCOME TAX DEPARTMENT

ITA 260/PAT/2026Status: DisposedITAT Patna31 August 2026AY 2019-20205 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the Assessing Officer's (AO) original assessment order was erroneous and prejudicial to the revenue as it accepted the assessee's return despite reopening the case for specific reasons. The PCIT rightly exercised jurisdiction under Section 263, and the assessee was directed to substantiate its case before the AO.

What were the facts?

The assessee's assessment order passed under Section 147 read with Section 144B was set aside by the Principal Commissioner of Income Tax (PCIT) under Section 263. The PCIT directed a re-examination of issues related to alleged unaccounted cash purchases and transactions with certain parties. The assessee appealed this order.

What were the issues?

Whether the PCIT rightly exercised jurisdiction under Section 263 to set aside an AO's order that was considered erroneous and prejudicial to the revenue. Whether the AO properly applied his mind while adjudicating the reopening of the case.

Which sections of the Income-tax Act were involved?

Section 263,Section 147,Section 144B,Section 148,Section 139

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, PATNA BENCH, PATNA

For Appellant: Shri D.V. Pathy, Sr. Adv. & Hiresh Karan
For Respondent: Shri Bharat Bhushan Garg, CIT-DR
Hearing: 27.07.2026Pronounced: 31.08.2026

PER LAXMI PRASAD SAHU, ACCOUNTANT MEMBER

This is an appeal filed by the assessee against the order passed u/s 263 of the Income Tax Act, 1961 (hereinafter referred to as “the Act”) by the Ld. Principal Commissioner of Income Tax, Patna – 1 (hereinafter referred to as “the Ld. PCIT) dated 27.02.2026, DIN & order No. ITBA/COM/F/17/2025-26/1086667841(1) challenging the order of Ld. PCIT.

2 Venky Steels Pvt. Limited

2.

Briefly stated the facts of the case are that the assessee filed return of income u/s 139 of the Act. Later on case of the assessee was completed u/s 147 r.w.s.144 of the Act on 23.01.2024. The case of the assessee y was reopened u/s 148 of the Act and o

The order continues below.

Read the full judgment

A free account opens 10 full judgments a month. Re-reading one you have already opened does not count again.

Create a free accountSign in

See plans and prices

The summary, the parties, the sections and the citations above are open to everyone and always will be. Only the text of the order and the PDF are metered.

More judgments on Section 263

All 13,616 judgments and leading authorities on Section 263 →

Latest GST High Court judgments

Search GST case law →