OLYMPIC DECOR LLP,AHMEDABAD vs. THE PR.CIT, AHMEDABAD-3, AHMEDABAD

ITA 423/AHD/2024Status: DisposedITAT Ahmedabad23 May 2025AY 2018-19Bench: S/SHRI T.R. SENTHIL KUMAR, JUDICIAL MEMBER AND MAKARAND V.MAHADEOKAR (Accountant Member)1 pages
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What did the Tribunal hold?

The Tribunal held that the PCIT erred in invoking Section 263 as the assessment order was neither erroneous nor prejudicial to the interest of the revenue. The Tribunal found that the Assessing Officer had conducted proper inquiries and that the PCIT's view was based on an incorrect premise or a difference of opinion.

What were the facts?

The assessee's assessment order was set aside by the Principal Commissioner of Income Tax (PCIT) under Section 263, citing it as erroneous and prejudicial to the revenue. The PCIT raised issues including depreciation on goodwill, deduction under Section 80IA, and non-taxation of a loan as unexplained credit.

What were the issues?

Whether the PCIT correctly assumed jurisdiction under Section 263 when the Assessing Officer's assessment order was reasoned and supported by inquiries, and whether the PCIT demonstrated that the order was erroneous and prejudicial to the revenue.

Which sections of the Income-tax Act were involved?

Section 263,Section 143(3),Section 32(1)(ii),Section 32(2),Section 80IA,Section 68,Section 115BBE,Section 28

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Income Tax Appellate Tribunal, “D” BENCH, AHMEDABAD

For Appellant: Shri Tushar Hemani, Sr.Advocate &, Shri Rignesh Das, CIT-DR
Hearing: 28/04/2025Pronounced: 23/05/2025

आदेश आदेश

PER MAKARAND V.MAHADEOKAR, AM:

This appeal is preferred by the assessee against the order passed under section 263 of the Income Tax Act, 1961 (hereinafter referred to as “the Act”) by the Principal Commissioner of Income Tax-3, Ahmedabad [hereinafter referred to as “PCIT”] dated 22.02.2024 for the Assessment Year 2018–19, wherein the learned PCIT set aside the assessment order passed under section 143(3) of the

The order continues below.

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