APRAAVA RENEWABLE ENERGY PRIVATE LIMITED,MUMBAI vs. THE PR.CIT, AHMEDABAD-1, AHMEDABAD

ITA 693/AHD/2025Status: DisposedITAT Ahmedabad03 September 2025AY 2020-21Bench: SHRI SANJAY GARG (Judicial Member), SMT. ANNAPURNA GUPTA (Accountant Member)8 pages
AI SummaryAllowed

What did the Tribunal hold?

The tribunal held that the PCIT's orders under Section 263 were unsustainable. It found that the PCIT failed to identify any specific error in the AO's orders and merely remanded the issues for verification, which is beyond the scope of revisionary powers as the twin conditions for exercising Section 263 (error causing prejudice) were not met.

What were the facts?

The PCIT initiated revisionary proceedings under Section 263 of the Income Tax Act for Assessment Years 2020-21 and 2021-22, asserting that the assessment orders were erroneous and prejudicial to the revenue. This was based on alleged excess depreciation claims by the assessee, not properly enquired into by the AO, and an incorrect allowance of deduction under Section 43B.

What were the issues?

Whether the PCIT validly exercised revisionary powers under Section 263 when merely remitting issues for verification without establishing a specific error causing prejudice to the revenue, concerning depreciation claims and Section 43B disallowances.

Which sections of the Income-tax Act were involved?

Section 263,Section 43B,Section 32(1)(i)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “D” BENCH, AHMEDABAD

Before: SHRI SANJAY GARG & SMT. ANNAPURNA GUPTA

For Appellant: Shri Vartik Choksi, A.R, Shri Sher Singh, CIT. DR
For Respondent: Shri Sher Singh, CIT. DR
Hearing: 28/08/2025

PER ANNAPURNA GUPTA, AM: Both appeals relate to the same assessee and are against separate orders passed by the Ld. Principal Commissioner of Income Tax, PCIT, Ahmedabad-1 (in short “PCIT”), dated 06.03.2025 & 08.03.2025 passed under Section 263 of the Income Tax Act, 1961 (hereinafter referred to as the “Act”) and relate to Assessment Years (A.Ys.) 2020-21 & 2021-22 respectively.

ITA Nos. 693 & 694/Ahd/2025 [Apraava Renewable Energy Private Limited vs. PCIT] A.Ys. 2020-21

The order continues below.

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