LEKHRAJ AND ASSOCIATES ,AGRA vs. PR.CIT.-1, AGRA
Facts
The assessees appealed against the orders of the learned PCIT/CIT. A common issue in all these cases was that the impugned orders did not provide a categorical finding on how the assessment was erroneous or prejudiced the revenue interest.
Held
The tribunal noted that the Revenue's argument that non-compliance with show-cause notices should lead to upholding the orders was not sustainable. The tribunal relied on settled law that for revision under Section 263, the assessment must be both erroneous and prejudicial to the revenue.
Key Issues
Whether the PCIT/CIT correctly invoked Section 263 powers without providing specific findings on errors and prejudice to revenue.
Sections Cited
Section 263
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, AGRA BENCH, AGRA
Before: Sh. Satbeer Singh Godara & Sh. Manoj Kumar Aggarwal
IN THE INCOME TAX APPELLATE TRIBUNAL AGRA BENCH, AGRA Before Sh. Satbeer Singh Godara, Judicial Member & Sh. Manoj Kumar Aggarwal, Accountant Member ITA No. 33/Agr./2023 : Asstt. Year : 2012-13 Rajendra Singh Chauhan, Vs PCIT, Gram Tumen, Ashok Nagar, Gwalior Madhya Pradesh-473332 (APPELLANT) (RESPONDENT) PAN No. APBPC5597E
Assessee by : Sh. Pankaj Garg, Adv. Revenue by : Sh. Shailenra Srivastava, Sr. DR ITA No. 46/Agr./2021 : Asstt. Year : 2015-16 M/s RBA Systems (P) Ltd., Vs PCIT, F-9/35, Surya Kiran Building, Sanjay Agra-1, Place, Agra, U.P.-282002 Agra, U.P.-282002 (APPELLANT) (RESPONDENT) PAN No. AAGCR3680L
Assessee by : Sh. Anurag Sinha, Adv. Revenue by : Sh. Sukesh Kumar Jain, CIT-DR ITA No. 39/Agr./2021 : Asstt. Year : 2016-17 Ashok Kumar Agarwal, Vs PCIT, 137, Mohalla Ganj, Agra-1, Firozaba, U.P.-283203 Agra, U.P.-282002 (APPELLANT) (RESPONDENT) PAN No. AAWPA0325J
Assessee by : Sh. Pankaj Garg, Adv. Revenue by : Sh. Sukesh Kumar Jain, CIT-DR Date of Hearing: 10.02.2025 Date of Pronouncement: .02.2025 ITA No. 39/Agr./2022 : Asstt. Year : 2016-17 Sh. Siddhi Vinayak Developers, Vs PCIT-1, B-7, Poonam Complex, Jeoni Mandi, Agra, Agra, U.P.- 282004 U.P.-282002 (APPELLANT) (RESPONDENT) PAN No. ACDFS3072P Assessee by : Sh. Navin Garg, Adv. Revenue by : Sh. Sukesh Kumar Jain, CIT-DR
ITA No. 33/Agr./2022 & 20 others 2
ITA No. 40/Agr./2022 : Asstt. Year : 2012-13 Praveen Kumar Verma, Vs PCIT-1, 31/21, Tarkari Gali, Lohamandi, Agra, Agra, U.P.-282002 U.P.-282002 (APPELLANT) (RESPONDENT) PAN No. AFOPV7592M
Assessee by : Sh. Rajesh Malhotra, CA Revenue by : Sh. Sukesh Kumar Jain, CIT-DR
ITA No. 47/Agr./2022 : Asstt. Year : 2017-18 People’s Heritage Hospital Pvt. Ltd., Vs PCIT-1, 7/52, A1, Bye Pass Road, Jawahar Agra, Nagar, Agra, U.P.-282002 U.P.-282002 (APPELLANT) (RESPONDENT) PAN No. AAICP5155G Assessee by : None Revenue by : Sh. Sukesh Kumar Jain, CIT-DR
ITA No. 49/Agr./2022 : Asstt. Year : 2017-18 Girjesh Gupta, Vs PCIT-1, Karhal Road, Dariba, Agra, Mainpuri, U.P.-205001 U.P.-282002 (APPELLANT) (RESPONDENT) PAN No. AIAPG8808J Assessee by : None Revenue by : Sh. Sukesh Kumar Jain, CIT-DR
ITA No. 50/Agr./2022 : Asstt. Year : 2017-18 Goyal Brothers, Vs PCIT-1, Mandi Motiganj, Mainpuri, Agra, U.P.-205001 U.P.-282002 (APPELLANT) (RESPONDENT) PAN No. AAQFG2717G Assessee by : Sh. Prathna Jalan, CA Revenue by : Sh. Sukesh Kumar Jain, CIT-DR ITA No. 66/Agr./2022 : Asstt. Year : 2017-18 Big Shoes, Vs PCIT-1, 91-92, Shree Ram Plaza Shoe Complex, Agra, Hing Ki Mandi, U.P.-282002 Agra, U.P.-282003 (APPELLANT) (RESPONDENT) PAN No. AAEFB2942E ITA No. 67/Agr./2022 : Asstt. Year : 2017-18
ITA No. 33/Agr./2022 & 20 others 3
Jones Traders, Vs PCIT-1, 8-35, Shoe Market, Hing Ki Mandi, Agra, Agra, U.P.-282003 U.P.-282002 (APPELLANT) (RESPONDENT) PAN No. AADFJ1407D Assessee by : Sh. Gaurav Goyal, CA Revenue by : Sh. Sukesh Kumar Jain, CIT-DR
ITA No. 81/Agr./2022 : Asstt. Year : 2017-18 Indu Gold & Diamons Pvt. Ltd., Vs PCIT-1, 3/64, Jain Mandir, Gali Lekhraj Nagar, Agra, Aligarh, U.P.-202001 U.P.-282002 (APPELLANT) (RESPONDENT) PAN No. AADCI3721Q
Assessee by : Sh. Pankaj Garg, Adv. Revenue by : Sh. Sukesh Kumar Jain, CIT-DR
ITA No. 83/Agr./2022 : Asstt. Year : 2017-18 OM Ice and Chilling Plant, Vs PCIT-1, 21/276, Chaudhry Mehtab Singh Agra, Compound, Jeoni Mandi, U.P.-282004 U.P.-282002 (APPELLANT) (RESPONDENT) PAN No. AABFO1699J
Assessee by : Sh. Anurag Sinha, Adv. Revenue by : Sh. Sukesh Kumar Jain, CIT-DR
ITA No. 84/Agr./2022 : Asstt. Year : 2017-18 Ram Murti, Vs PCIT-1, D-53, Industrial Estate, Agra, Aligarh, U.P.-202001 U.P.-282002 (APPELLANT) (RESPONDENT) PAN No. AAYPM9991Q
Assessee by : None Revenue by : Sh. Sukesh Kumar Jain, CIT-DR
ITA No. 85/Agr./2022 : Asstt. Year : 2017-18 Shobhit Bansal, Vs PCIT-1, 13, Gailana Road, Kailash Vihar, Agra, Agra, U.P.-282006 U.P.-282002 (APPELLANT) (RESPONDENT) PAN No. AFYPB0516M Assessee by : Sh. Gourav Goyal, CA Revenue by : Sh. Sukesh Kumar Jain, CIT-DR
ITA No. 33/Agr./2022 & 20 others 4
ITA No. 97/Agr./2022 : Asstt. Year : 2017-18 Shiva Traders, Vs PCIT-1, 2/262, Transport Nagar, Agra, Agra, U.P.-282002 U.P.-282002 (APPELLANT) (RESPONDENT) PAN No. AAYFS0940D Assessee by : Sh. Prathna Jalan, CA Revenue by : Sh. Shailender Shrivastava, Sr. DR
ITA No. 153/Agr./2023 : Asstt. Year : 2017-18 Manjhi Brick Field, Vs PCIT-1, C/o J N Goyal & Company, Agra, C-162, Ranjeet Nagar, Bharatpur, U.P.-282002 Rajasthan-321001 (APPELLANT) (RESPONDENT) PAN No. AAVFM9124G
Assessee by : None Revenue by : Sh. Sukesh Kumar Jain, CIT-DR Date of Hearing: 12.02.2025 Date of Pronouncement: .02.2025
ITA No. 26/Agr./2022 : Asstt. Year : 2017-18 M/s Tej Shoe Tech, Vs PCIT-1, 10-11th Mile Stone, Agra Mathura Road, Agra, Agra, U.P.-282007 U.P.-282002 (APPELLANT) (RESPONDENT) PAN No. AAAFT7902L
Assessee by : Sh. Sahib P. Satsangi, Adv. Revenue by : Dr. Arun Kumar Yadav, CIT-DR ITA No. 139/Agr./2024 : Asstt. Year : 2017-18 Asha Gupta, Vs PCIT-1, Mohalla Mahajnan, Bhongaon, Bewar, Agra, U.P.-205001 U.P.-282002 (APPELLANT) (RESPONDENT) PAN No. AKEPG8119Q
Assessee by : Ms. Prarthana Jalan, CA . Revenue by : Dr. Arun Kumar Yadav, CIT-DR
Date of Hearing: 19.02.2025 Date of Pronouncement: .02.2025
ITA No.98/Agr./2022 : Asstt. Year : 2017-18
ITA No. 33/Agr./2022 & 20 others 5
Lekhraj and Associates, Vs PCIT-1, 36, New Ashok Nagar, Agra, Agra, U.P.-282002 U.P.-282002
(APPELLANT) (RESPONDENT) PAN No. AACFL1298B Assessee by : Sh. Prathna Jalan, CA Revenue by : Sh. Shailender Shrivastava, CIT-DR
ITA No. 107/Agr./2022 : Asstt. Year : 2017-18 Prashant Kumar Mangal, Vs PCIT-1, 703, Padam Deep Tower, G-10/8, Sanjay Agra, Place, Agra, U.P.-282002 U.P.-282002
(APPELLANT) (RESPONDENT) PAN No. ACVPM0428R Assessee by : Sh. Anurag Sinha, Adv. Revenue by : Sh. Shailender Shrivastava, CIT-DR Date of Hearing: 20.02.2025 Date of Pronouncement: .02.2025
ITA No. 107/Agr./2023 : Asstt. Year : 2017-18 Sh. Manoj Agarwal, 3-B/19, Rati Talai, Vs PCIT-1, Agra, Banswara (Rajasthan)327001. U.P.-282002
(APPELLANT) (RESPONDENT) PAN No. AFSPA3819E Assessee by : Sh. Rajendra Sharma, Adv. Revenue by : Sh. Sukesh Kumar Jain, CIT-DR Date of Hearing: 13.02.2025 Date of Pronouncement: 21.02.2025 ORDER Per Bench: These twenty one assessees as many appeals involving the following relevant details thereof stand tabulated as under: Sl. N o. IT A N os . A. Y . Ap pella nt Re s pon den t O rde r pa s se d a gains t P roce e dings u/ s 1. 33/ A g r./ 202 3 201 2- 13 Ra j en d ra P CIT P CIT , G wa lior’ s c as e N o. 26 3 Singh P r. CIT / Gw l/2 63/ 2 0 21- 2 2 Ch a uh a n dat e d 1 4. 0 3 .2 0 22 2. 40/ A g r./ 202 2 201 2- 13 P ra ve en P CIT- 1 P CIT , A g ra- 1’ s c as e No . 26 3 Kuma r P CIT -1 / A gra/ IT O (O SD) Ve rma / 263/ P KV/ 2 0 2 1- 22 Da te d 31 .0 3. 20 22 3. 46/ A g r./ 202 1 201 5- 16 RBA P CIT- 1 P CIT , A gra - 1’s , D IN & 14 3( 3) Sys te ms ( P) orde r No . Lt . ITB A/ RE V/ F/ REV5 / 2 02 0 - 21/ 1 0 32 0 6 040 7( 1) , dat e d 3 1. 0 3 .2 0 21 4. 39/ A g r./ 202 1 201 6- 17 As hok P CIT- 1 P CIT , A gra - 1’s , D IN & 14 3( 3) Kuma r orde r No . Agra wa l ITB A/ RE V/ F/ REV5 / 2 02 0 - 21/ 1 0 31 4 8 231 0( 1) , dat e d 1 5. 0 3 .2 0 21 5. 39/ A g r./ 202 2 201 6- 17 Sh ri S idh i P CIT- 1 P CIT , A gra - 1’s , D IN & 14 3( 3) Vinay ak orde r No . Dev elo pe rs ITB A/ RE V/ F/ REV5 / 2 02 0 - 21/ 1 0 32 0 5 494 5( 1) , dat e d 3 1. 0 3 .2 0 21 6. 26/ A g r./ 202 2 201 7- 18 Te j Sh oe P CIT- 1 P CIT , A g ra- 1’ s c as e No . 26 3 Te ch P CIT -1 / Ag ra / ITO ( OSD) / 26 3/ Te j/ 2 0 21- 22 Da te d 31 .0 3. 20 22
ITA No. 33/Agr./2022 & 20 others 6
47/ A g r./ 202 2 201 7- 18 Pe ople’ s P CIT- 1 P CIT , A g ra- 1’ s c as e No . 26 3 Herit age P CIT -1 / Ag ra / ITO Hos pita l Pv t . ( OSD) / 26 3/ PHH PL / Lt d. 202 1 - 22 Da te d 31 .0 3. 20 22 8. 49/ A g r./ 202 2 201 7- 18 G irj es h P CIT- 1 P CIT , A g ra- 1’ s c as e No . 26 3 G upta P CIT -1 / Ag ra / ITO ( OSD) / 26 3/ G irje s h Gu pta / 2 0 21- 22 Da te d 31 .0 3. 20 22 9. 50/ A g r./ 202 2 201 7- 18 G oya l P CIT- 1 P CIT , A g ra- 1’ s c as e No . 26 3 B roth e rs P CIT -1 / Ag ra / ITO ( OSD) / 26 3/ G oya l / 202 1 - 22 Da te d 31 .0 3. 20 22 10. 66/ A g r./ 202 2 201 7- 18 Big S h oes P CIT- 1 P CIT , A g ra- 1’ s c as e No . 26 3 P CIT -1 / Ag ra / ITO ( OSD) / 26 3/ Big Sh oes / 202 1 - 22 Da te d 31 .0 3. 20 22 11. 67/ A g r./ 202 2 201 7- 18 J one s P CIT- 1 P CIT , A g ra- 1’ s c as e No . 26 3 T ra de rs P CIT -1 / Ag ra / ITO ( OSD) / 26 3/ J T/ 2 02 1- 2 2 Da te d 31 .0 3. 20 22 12. 81/ A g r./ 202 2 201 7- 18 In du G ol d & P CIT- 1 P CIT , A g ra- 1’ s c as e No . 26 3 diam on ds P CIT -1 / Ag ra / ITO Pv t. L t d. ( OSD) / 26 3/ IG D/ 2 02 1- 2 2 Da te d 31 .0 3. 20 22 13. 83/ A g r./ 202 2 201 7- 18 O M Ic e P CIT- 1 P CIT , A g ra- 1’ s c as e No . 26 3 Ch ill in g P CIT -1 / Ag ra / ITO Plan t ( OSD) / 26 3/ O m Ic e & Ch ill in g Pl an t/ 202 1- 22 Da te d 31 .0 3. 20 22 14. 84/ A g r./ 202 2 201 7- 18 Ram Mu rt i P CIT- 1 P CIT , A g ra- 1’ s c as e No . 26 3 P CIT -1 / Ag ra / ITO ( OSD) / 26 3/ Ram Mu rt i/ 20 21- 2 2 Da te d 31 .0 3. 20 22 15. 85/ A g r./ 202 2 201 7- 18 Sho bhi t P CIT- 1 P CIT , A g ra- 1’ s c as e No . 26 3 Ban sa l P CIT -1 / Ag ra / ITO ( OSD) / 26 3/ SB/ 2 02 1- 22 Da te d 31 .0 3. 20 22 16. 97/ A g r./ 202 2 201 7- 18 Shiva P CIT- 1 P CIT , A g ra- 1’ s c as e No . 26 3 T ra de rs P CIT -1 / Ag ra / ITO ( OSD) / 26 3/ M/ s Sh iv a T ra de rs / 20 2 1- 2 2 Da te d 31 .0 3. 20 22 17. 98/ A g r./ 202 2 201 7- 18 Le kh raj a n d P CIT- 1 P CIT , A g ra- 1’ s c as e No . 26 3 As sociate s P CIT -1 / Ag ra / ITO ( OSD) / 26 3/ Kek h raj / 202 1 - 22 Da te d 31 .0 3. 20 22 18. 107 / A gr./ 20 22 201 7- 18 P ra sh a nt P CIT- 1 P CIT , A g ra- 1’ s c as e No . 26 3 Kuma r P CIT -1 / Ag ra / ITO Ma n ga l ( OSD) / 26 3/ P KM/ 2 02 1- 22 Da te d 31 .0 3. 20 22 19. 107 / A gr./ 20 23 201 7- 18 Ma n oj P CIT- 1 P CIT , A g ra- 1’ s c as e No . 26 3 Aga rwa l P CIT -1 / Ag ra / ITO ( OSD) / 26 3/ Ma n oj / 202 1 - 22 Da te d 31 .0 3. 20 22 20. 153 / A gr./ 20 23 201 7- 18 Ma n jh i B ric k P CIT- 1 P CIT , A g ra- 1’ s c as e No . 26 3 Field P CIT -1 / A gra/ IT O( O SD) / 263/ M an j hi/ 2 02 1 - 22 Da te d 31 .0 3. 20 22 21. 139 / A gr./ 20 24 201 7- 18 As ha Gu pt a P CIT- 1 P CIT , A g ra- 1’ s c as e No . 26 3 P CIT -1 / A gra/ IT O( O SD) / 263/ As ha / 20 2 1- 2 2 Da te d 31 .0 3. 20 22
ITA No. 33/Agr./2022 & 20 others 7
Heard all the assessees and department through their respective learned representatives. Case files perused.
It emerges during the course of hearing in all these cases
that although they are filed by different assessees against the
respective orders of the learned PCIT’s or CIT’s; as the case
may be, we find a clinching common/identical fact herein as
none of the impugned order(s) has given any categorical
finding as to how and in what manner, the regular
assessment(s) in question are erroneous ones or they do cause
prejudice to the interest of the Revenue, simultaneously.
Faced with this situation, the Revenue’s very able learned
CIT-DR vehemently argues that once these assessees had been
issued the corresponding section 263 show-cause notices which
remained non-complied at their end, even if there is no specific
finding in the impugned orders, the same deserve to be upheld
for want of rebuttal by the appellant side before the revisional
authority(es).
We have given out thoughtful consideration to the
vehement rival pleadings. We find no reason to sustain any of
the impugned revision direction forming subject matter of our
adjudication in all these cases. This is for the precise reason
that apart from reproducing the corresponding show-cause
notices which went un-responded by the most of the assessees,
ITA No. 33/Agr./2022 & 20 others 8
there is not even a single instance wherein the learned
revisional authority has arrived at any categorical finding on
merits after having discussed the relevant error as well as
prejudice caused to the interest of the Revenue. Needless to
say, the law on exercise of the impugned revision jurisdiction
stand very well settled since long in light of Malabar Industries
Ltd. vs. CIT (2000) 243 ITR 83(SC) that before the same is
invoked, the assessment has to be simultaneously erroneous as
well as causing prejudice to the interest of the Revenue.
Meaning thereby that till the time such a conclusion is not
arrived at by the learned revision authority, an assessment
could not be held as liable to be revised merely because of the
fact that the corresponding show-cause notice(s) issued to the
taxpayer have gone un-responded. We are further informed
that case law M. L. Chains Vs. PCIT (2024) 461 ITR 457 (All.)
has already decided the very issue involving a similar revision
direction, as not sustainable, in para 20 thereof. We thus
accept the assessees identical submissions in all these cases to
this extent and reverse the learned PCIT’s section 263
corresponding identical revision directions. Ordered
accordingly. All necessary computation shall follow.
All other pleadings on merit amongst the parties stand
rendered academic in above terms.
ITA No. 33/Agr./2022 & 20 others 9
To sum up, all these twenty one assessees’ as many
appeals ITA Nos. 39 & 46/Agr./2021, ITA Nos. 26, 39, 40, 47,
49, 50, 66, 67, 81, 83, 84, 85, 97, 98 & 107/Agr./2022, ITA
Nos. 33, 107 & 153/Agr./2023 and ITA Nos. 139/Agr./2024 are
allowed in above terms. A copy of this common order be placed
in the respective case files.
Order Pronounced in the Open Court on 21/02/2025. Sd/- Sd/- (Manoj Kumar Aggarwal) (Satbeer Singh Godara) Accountant Member Judicial Member Dated: 21/02/2025 *Subodh Kumar, Sr. PS* Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR
