RADHESHYAM AGARWAL,BHOPAL vs. THE PCIT, CENTRAL, BHOPAL , BHOPAL

ITA 417/IND/2025Status: DisposedITAT Indore16 January 2026AY 2018-1944 pages
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What did the Tribunal hold?

The Tribunal held that the PCIT's order under Section 263 was not justified. It reasoned that the AO's failure to explicitly mention penalty proceedings or conduct further inquiries did not automatically render the assessment order erroneous and prejudicial to revenue.

What were the facts?

During a survey, the assessee accepted undisclosed income from discrepancies in cash, stock, and interest. The Assessing Officer (AO) accepted these declarations in the assessment order but did not levy tax under Section 115BBE. The Principal Commissioner of Income Tax (PCIT) revised the order under Section 263, deeming it erroneous and prejudicial to revenue, directing the AO to reframe the assessment and initiate penalty proceedings.

What were the issues?

Whether the PCIT was justified in revising the assessment order under Section 263 solely because the AO did not initiate penalty proceedings or conduct further inquiries regarding surrendered income.

Which sections of the Income-tax Act were involved?

Section 263,Section 115BBE,Section 69,Section 69A,Section 271AAC(1)

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Cases cited in this judgment(3)Show list

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Income Tax Appellate Tribunal, INDORE BENCH, INDORE

Before: SHRI B.M. BIYANI & SHRI PARESH M JOSHI

Per Paresh M Joshi, J.M.: This is an Appeal filed by the Assessee under section 253 of the income tax Act 1961[herein after referred to as the Act for the sake of brevity] before this tribunal. The Assessee is aggrieved by the order bearing Number:-ITBA /REV/F/REV5/2024-25/1074524226(1) dated 15.03.2025 passed by the Ld. PCIT(Central), Bhopal, u/s 263 of the Act which is herein after referred to as the "Impugned order". The Relevant Assessment year is 2018-19 and the corresponding previous year period is from 01.04.2017 to 31.03.2018. 2. Factual Matrix

2.

1 That as and by way of an Assessment order passed under section 147/143(3) of the Act, the Assessee's total income exigible to tax was com

The order continues below.

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