SHRI VASANT MANJI THACKER,BHUJ vs. PRINCIPAL COMMISSIONER OF INCOME TAX(CENTRAL), AHMEDABAD, AHMEDABAD

ITA 767/RJT/2026Status: DisposedITAT Rajkot31 August 2026AY 2016-1721 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the AO had conducted a proper inquiry by calling for and examining all necessary documents and details from the assessee. The PCIT's finding of a 'lack of inquiry' was therefore incorrect, and the assessment order was not erroneous or prejudicial to the revenue.

What were the facts?

The assessee claimed long-term capital gains exemption on penny stock transactions. The Principal Commissioner of Income Tax (PCIT) invoked revisionary powers under Section 263, holding the Assessing Officer's (AO) order erroneous and prejudicial to revenue due to lack of inquiry. The assessee argued that the AO had conducted a thorough inquiry and accepted the transactions.

What were the issues?

Whether the PCIT correctly invoked Section 263 powers based on a perceived lack of inquiry by the AO, and whether the AO's assessment order was indeed erroneous and prejudicial to the revenue.

Which sections of the Income-tax Act were involved?

Section 263,Section 147,Section 144B,Section 10(38),Section 68,Section 115BBE,Section 148,Section 148A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, Rajkot Bench, Rajkot

Before: Dr. Arjun Lal Saini & Shri Sonjoy Sarma

For Appellant: Shri Kalpesh Doshi, Ld. AR
For Respondent: Shri Ram Tiwari, Ld. CIT DR
Hearing: 30/07/2026Pronounced: 31/08/2026

Per, Dr. Arjun Lal Saini, AM: By way of this appeal, the assessee, has called into question correctness of impugned order passed by the learned Principal Commissioner of Income Tax under section 263 of the Income tax Act, 1961, in the matter of assessment under section 147 r.w.s. 144B of the Act for the assessment year 2016-17, on the following grounds:

“1. That, the Ld. PCIT has wrongly invoked provisions of section 263 of the I.T. Act, 1961 and wrongly held

The order continues below.

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