M/S CIDER TRACOM PVT. LTD.,KOLKATA vs. I.T.O.,WARD-6(1), KOLKATA
What did the Tribunal hold?
The Tribunal found that the assessee did not make an effective representation during the revisionary proceedings. Therefore, the matter was restored to the Pr. CIT to allow the assessee to substantiate their case and explain why revision was not required.
What were the facts?
The assessee appealed against the revisionary jurisdiction exercised by the Principal CIT. The assessment order was framed after limited scrutiny, but the Pr. CIT believed the AO failed to take logical action on available information, particularly regarding share premium.
What were the issues?
Whether the Pr. CIT validly exercised revisionary jurisdiction under Section 263 when the assessee did not effectively participate in the revisionary proceedings and the AO allegedly failed to conduct proper verification.
Which sections of the Income-tax Act were involved?
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “B” BENCH, KOLKATA
Before: HON’BLE SHRI ABY T. VARKEY, JM & HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM
O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aforesaid appeal by assessee for Assessment Year (AY) 2015-16 contest the validity of revisionary jurisdiction u/s 263 as exercised by Ld. Pr. CIT- 2, Kolkata vide order dated 13.03.2020.
The registry has noted a delay of 27 days in the appeal, the condonation of which has been sought by Ld. Sr. Counsel. Keeping in view the fact that the year 2020 was marred by Corona Pandemic (Cavid-19) and keeping in view the period of delay, we condone and delay and proceed for adjudication of the same on merits.
The Ld. Sr. Counsel submitted that ‘limited scrutiny’ was carried out for the year to verify three aspects as detailed in the assessment order.
These aspects were duly verified by Ld. AO during the course of assessment proceedings. Therefore, Ld. Pr. CIT erred in enlarging the scope of ‘limited scrutiny’ by way of revision. For the same, Ld. Sr. Counsel relied on various judicial pronouncements, the copies of which have been placed on record. The Ld. CIT-DR, on the other hand, drew attention to the fact that the assessee did not appear during revisional proceedings and these arguments were never considered while revising the order.
After due consideration of assessment order as well as revisionary order, we find that though the assessment was framed by Ld. AO to examine various aspects as enumerated therein, however, Ld. Pr. CIT, upon perusal of case records, opined that Ld. AO failed to take logical action on the information available with him. One of the grounds was issue of large share premium but Ld. AO completed the assessment without necessary legal verification or investigation and did not make addition on account of Share Capital for Rs.75 Lacs. The failure to do has made the assessment order amenable to revision u/s 263. It could also be seen that though various show-causes notices were issued by Ld. Pr. CIT, however, none appeared for assessee. Finally, Ld. AO was directed to make fresh assessment to examine the issue on the lines as stated in the revisionary order. Aggrieved, the assessee is in further appeal before us.
After careful consideration, we find that since no effective representation was made by the assessee during revisionary proceedings and all the arguments are being raised for the first time before us, it would be in the fitness of things if the matter of revision be restored back to the file of Ld. Pr. CIT with a direction to the assessee to substantiate his case and explain as to why the revision is not required in the assessment order.
The appeal stand allowed for statistical purposes.
More judgments on Section 263
- Gillette India Limited, Mumbai vs Principal Commissioner of Income Tax, JaipurITA 1316/JPR/2026[2018-19]Status: Disposed16 Oct 2026AY 2018-19
- Neo Structo Construction P. Ltd., Ahmedabad vs The Pr. CIT- 3, AhmedabadITA 1216/AHD/2026[2015-2016]Status: Disposed16 Oct 2026AY 2015-2016
- Vimal Harilal Baldania, Gandhidham vs The ITO Ward 2, GandhidhamITA 770/RJT/2025[2017-18]Status: Disposed15 Oct 2026AY 2017-18
- J.D. Marketing, Kolkata vs ITO, Ward 37(1), KolkataITA 1493/KOL/2026[2015-2016]Status: Disposed15 Oct 2026AY 2015-2016
- J.D. Marketing, Kolkata vs ITO, Ward 37(1), KolkataITA 1492/KOL/2026[2013-2014]Status: Disposed15 Oct 2026AY 2013-2014
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