M/S SOVA,PANAJI vs. PR. COMMISSIONER OF INCOME TAX, PANAJI

ITA 24/PAN/2024Status: DisposedITAT Panaji10 March 2026AY 2018-19Bench: HON’BLE SHRI PAVAN KUMAR GADALE (Judicial Member), SHRI G. D. PADMAHSHALI (Accountant Member)20 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal held that the PCIT's assumption of jurisdiction under Section 263 was sustainable. While stamp duty for mining lease renewal was correctly treated as capital in nature, registration fees were held to be revenue expenditure. The Tribunal also addressed the consequential impact on business losses and depreciation.

What were the facts?

The assessee, a mining firm, filed a return declaring NIL income with substantial carried forward losses. The PCIT initiated revisionary proceedings under Section 263, finding the original assessment order erroneous and prejudicial to revenue. The PCIT directed that stamp duty and registration fees for mining lease renewal be treated as capital expenditure, denied set-off of income from other sources against business losses, and rejected the carry forward of business losses.

What were the issues?

Whether the PCIT rightly assumed jurisdiction under Section 263, and whether stamp duty and registration fees for mining lease renewal constitute capital or revenue expenditure.

Which sections of the Income-tax Act were involved?

Section 263,Section 143(3),Section 56,Section 37(1),Section 32

AI-generated summary — verify with the full judgment below

Cases cited in this judgment(11)Show list

Detected automatically from the text. Citations are also linked where they appear in the judgment. The count shows how many other judgments on BharatTax rely on the same authority.

Income Tax Appellate Tribunal, PANAJI BENCH, GOA

Before: HON’BLE SHRI PAVAN KUMAR GADALE & SHRI G. D. PADMAHSHALI

For Appellant: Mr Sukhsagar Syal [‘Ld. AR’]
For Respondent: Mr M Satish [‘Ld. DR’]
Pronounced: 10/03/2026

PER G. D. PADMAHSHALI; This appeal is filed u/s 253(1) of the Income-tax Act,

1961 [‘the Act’] impugns revisionary order dt.

01/12/2023 passed u/s 263 of the Act by the Principal Commissioner of Income Tax, Panaji Goa

[‘Ld. PCIT’] which partly overturned order of assessment dt. 16/04/2021 passed u/s 143(3) of the ITAT-Panaji M/s Sova Vs PCIT ITA No. 024/PAN/2024 AY: 2018-19 Act by National Faceless e-Asstt. Centre, Delhi [‘Ld. NFeAC’] for assessment year 2018-19.[‘AY’]

2.

Briefly stated pertinent facts arising out of the case records are that;

2.

1 The assessee is a partnership firm engaged in the business of mining of iron ore minerals and allied

The order continues below.

Read the full judgment

A free account opens 10 full judgments a month. Re-reading one you have already opened does not count again.

Create a free accountSign in

See plans and prices

The summary, the parties, the sections and the citations above are open to everyone and always will be. Only the text of the order and the PDF are metered.

More judgments on Section 263

All 13,616 judgments and leading authorities on Section 263 →

Recent GST High Court judgments

Search GST case law →