DESAI INFRA PROJECTS(I) PRIVATE LIMITED,PUNE vs. PCIT, CENTRAL PUNE, PUNE

ITA 1851/PUN/2024Status: DisposedITAT Pune23 May 2025AY 2020-21Bench: DR. MANISH BORAD (Accountant Member), Ms. ASTHA CHANDRA (Judicial Member)8 pages
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What did the Tribunal hold?

The Tribunal held that the AO took a legally permissible view at the time of assessment regarding Section 14A and delayed PF contributions. The Tribunal found that no disallowance under Section 14A was warranted as the assessee had no investment out of interest-bearing funds and no dividend income was earned. Regarding PF contributions, the law at the time allowed for no disallowance if deposited before the return filing due date.

What were the facts?

The Principal Commissioner of Income Tax (PCIT) initiated revision proceedings under Section 263 against the assessee's assessment order. The PCIT believed the Assessing Officer (AO) failed to properly examine issues related to Section 14A disallowance and delayed employee PF contribution, making the assessment order erroneous and prejudicial to revenue.

What were the issues?

Whether the PCIT was justified in invoking Section 263 powers when the AO had taken a legally permissible view based on the prevailing law at the time of assessment, particularly concerning Section 14A disallowances and delayed employee PF contributions.

Which sections of the Income-tax Act were involved?

Section 263,Section 14A,Section 36(1)(va),Section 139(1)

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Income Tax Appellate Tribunal, PUNE “A” BENCH : PUNE

Before: DR. MANISH BORAD & Ms. ASTHA CHANDRA

Hearing: 15.05.2025Pronounced: 23.05.2025

PER DR. MANISH BORAD, AM:

This appeal filed by the assessee is directed against the order passed by the Ld. Principal Commissioner of Income Tax (Central), Pune [“PCIT”] u/s. 263 of the Act, dated 07/02/2024 for the Assessment Year (“AY”) 2020-21. 2. The assessee has raised the following grounds of appeal:-

“1. The learned Pr. CIT (Central) erred in passing order u/s 263 revising the asst. order on the ground that the asst. order passed u/s 143(3) was erroneous and prejudicial to the interest of the revenue.

2.

The learned Pr. CIT erred in holding that the learned A.O. had not verified the issue regarding the disallowance u/s 14A and thereby erred in

The order continues below.

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