NEERAJ ,FARIDABAD vs. PR, CIT , FARIDABAD

ITA 939/DEL/2025Status: DisposedITAT Delhi20 March 2026AY 2012-13Bench: SHRI YOGESH KUMAR U.S. (Judicial Member), SHRI AMITABH SHUKLA (Accountant Member)1 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal held that the PCIT erred in assuming jurisdiction under Section 263 when the assessee filed under Section 44AD, as this section does not require maintenance of books of accounts. Therefore, invoking Section 68 for unexplained cash credit was not permissible.

What were the facts?

The assessee filed its return of income under Section 44AD. The Principal Commissioner of Income Tax (PCIT) invoked revisionary powers under Section 263, holding the assessment order to be erroneous and prejudicial to revenue, directing a fresh assessment. The PCIT believed further inquiries were needed regarding cash deposits.

What were the issues?

Whether the PCIT can invoke Section 263 to direct further inquiries and additions under Section 68 when the assessee has filed under Section 44AD, which presumes income and does not require books of accounts?

Which sections of the Income-tax Act were involved?

Section 44AD,Section 68,Section 263,Section 144

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH, ‘E’: NEW DELHI

Before: SHRI YOGESH KUMAR U.S.

For Appellant: Shri Narender Chhillar, Adv
For Respondent: Ms. Rajinder Kaur, CIT-DR
Hearing: 26.02.2026Pronounced: 20.03.2026

PER AMITABH SHUKLA, AM,

These two appeals filed by the assessee are against the orders both dated 26.12.2024 of National Faceless Appeal Centre/learned Commissioner of Income Tax(Appeals), New Delhi, [hereinafter referred to as ‘ld. CIT(A)] arising out of assessment order dated 21.03.2023 passed under section 144 r.w.s. 263 of the Income Tax Act, 1961 pertaining to Assessment Year 2012-13. The word ‘Act’ herein this order would mean Income Tax Act, 1961. Since, both appeals pertain to the same assessee, they were heard together and are being adjudicated by this common order.

ITA Nos.928 and 929/Del/2025

2.

At the outset, we have noted that t

The order continues below.

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