KESAR BUILDCON PRIVATE LIMITED,BANASKANTHA vs. THE PCIT, AHMEDABAD-3, AHMEDABAD

ITA 790/AHD/2025Status: DisposedITAT Ahmedabad08 September 2025AY 2021-2210 pages
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What did the Tribunal hold?

The Tribunal held that the AO's assessment was limited to the CASS parameter and did not require examination of issues outside its scope. Furthermore, even on merits, Section 2(22)(e) was not applicable as the assessee was not a shareholder in the lending company.

What were the facts?

The assessee's return of income for AY 2021-22 was accepted by the AO. The PCIT invoked revisionary powers under Section 263, citing failure to examine a loan transaction and applicability of Section 2(22)(e). The PCIT believed the assessment order was erroneous and prejudicial to revenue.

What were the issues?

Whether the PCIT correctly invoked Section 263 when the AO's assessment was limited to a specific parameter, and whether Section 2(22)(e) was applicable to the loan transaction.

Which sections of the Income-tax Act were involved?

Section 263,Section 2(22)(e),Section 143(3),Section 144B

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Income Tax Appellate Tribunal, “C” BENCH, AHMEDABAD

Before: S/SHRI SANJAY GARG & MAKARAND V.MAHADEOKARShri Hem Chhajed, AR Shri Rignesh Das, CIT-DR

For Appellant: Shri Rignesh Das, CIT-DR
Hearing: 03/09/2025Pronounced: 08/09/2025

आदेश आदेश

PER MAKARAND V.MAHADEOKAR, AM: This appeal by the assessee is directed against the order passed by the Principal Commissioner of Income Tax, Ahmedabad - 3 [hereinafter referred to as “the PCIT”] under section 263 of the Income Tax Act, 1961 [hereinafter referred to as “the Act”], dated 30.03.2025, in relation to the assessment year 2021–22. The PCIT sought to revise the order dated 08.12.2022 passed under section 143(3) r.w.s. 1

The order continues below.

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