BAKERI PROJECTS PRIVATE LIMITED,AHMEDABAD vs. DCIT CIRCLE 1(1)(1), AHMEDABAD, AHMEDABAD

ITA 954/AHD/2025Status: DisposedITAT Ahmedabad04 July 2025AY 2020-21Bench: S/SHRI SANJAY GARG, JUDICIAL MEMBER AND MAKARAND V.MAHADEOKAR (Accountant Member)13 pages
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What did the Tribunal hold?

The Tribunal held that the PCIT's assumption of jurisdiction under Section 263 was unsustainable. The assessment order was not erroneous as the AO had conducted detailed inquiries and allowed set-off only to the eligible extent, and the PCIT's premise was factually incorrect.

What were the facts?

The assessee company, engaged in real estate, filed its return for AY 2020-21 declaring NIL income after setting off unabsorbed depreciation. The PCIT initiated revision proceedings under Section 263, alleging the assessment order was erroneous and prejudicial to revenue due to incorrect set-off of brought forward depreciation.

What were the issues?

Whether the PCIT correctly invoked Section 263 powers when the assessment order was based on detailed inquiry and the PCIT's premise was factually flawed, and whether the AO's actions constituted an 'erroneous' order prejudicial to revenue.

Which sections of the Income-tax Act were involved?

Section 263,Section 143(3),Section 144B,Section 142(1),Section 154

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Income Tax Appellate Tribunal, “B” BENCH, AHMEDABAD

Before: S/SHRI SANJAY GARG & MAKARAND V.MAHADEOKAR

For Appellant: Shri Deepak Shah, AR, and Shri Bharat Shah, AR
Hearing: 25/06/2025Pronounced: 04/07/2025

आदेश आदेश आदेश

PER MAKARAND V.MAHADEOKAR, AM: This appeal by the assessee is directed against the revisionary order dated 26.03.2025 passed under section 263 of the Income Tax Act, 1961 [hereinafter referred to as “the Act”] by the Principal Commissioner of Income Tax-1, Ahmedabad [hereinafter referred to as "Ld. PCIT"], for the Assessment Year 2020–21, whereby the assessment order passed under section ITA No.954 /Ahd/2025

143(3) r.w.s. 144B dated 27.

The order continues below.

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