GARG SHIP BREAKING PVT. LTD.,BHAVNAGAR vs. THE PR. CIT-1, AHMEDABAD

ITA 904/AHD/2025Status: DisposedITAT Ahmedabad25 September 2026AY 2021-224 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the AO's assessment was erroneous and prejudicial to the revenue as proper inquiries were not conducted, especially concerning the CGST Department's findings and red-flagged information. The assessment order was set aside for fresh assessment.

What were the facts?

The assessee's return of income was accepted by the AO despite red-flagged information about suppliers and a CGST search action where documents were seized. The PCIT revised the assessment order, holding that the AO failed to conduct proper inquiries.

What were the issues?

Whether the AO's assessment order was erroneous and prejudicial to the interest of revenue due to lack of proper inquiry, warranting revision under Section 263.

Which sections of the Income-tax Act were involved?

Section 263,Section 133(6)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, AHMEDABAD “D” BENCH

Before: Shri Tapas Ram Misra & Shri R. Govindarajan

For Appellant: Shri Mohit Balani, C.A
For Respondent: Shri Arvind Kumar Namdeo, Sr. D.R

PER R. GOVINDARAJAN, ACCOUNTANT MEMBER:

The assessee has filed the appeal against the order dated 29-03-2025 passed by Principal Commissioner of Income Tax, Ahmedabad-1 (in short, referred to as the PCIT) u/s. 263 of the Income Tax Act, 1961 (herein referred to as “the Act”) relating to Assessment Year 2021-22. 2. The assessee raised the following grounds of appeal:- “1. The learned PCIT has erred in law and on the facts of the case in exercising the powers u/s 263 of the Act. Under the facts the original order was neither erroneous or prejudicial to the interest of revenue and thus none of the conditions as envisaged under Section 263 are fulfilled.

2.

The Learned PCIT(A) erred in holding that

The order continues below.

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