NKC PROJECTS PRIVATE LIMITED,JAIPUR vs. PCIT DELHI-4, DELHI

ITA 2804/DEL/2025Status: DisposedITAT Delhi24 October 2025AY 2020-2127 pages
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What did the Tribunal hold?

The Tribunal held that the PCIT failed to point out any definite error in the assessment order and that the issues raised were adequately examined by the Assessing Officer. The Tribunal found that the PCIT's order was beyond jurisdiction as the twin conditions for invoking Section 263 were not met.

What were the facts?

The assessee's assessment order was revised by the PCIT under Section 263. The PCIT raised several issues, including lack of inquiry on creditors, bad debt, late deposit of PF/ESI, and increased expenses. The assessee contended that the PCIT introduced new issues not present in the show-cause notice, violating natural justice.

What were the issues?

Whether the PCIT correctly invoked Section 263 by introducing new issues not mentioned in the show-cause notice and whether the assessment order was erroneous and prejudicial to the revenue.

Which sections of the Income-tax Act were involved?

Section 263,Section 143(3)

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

For Appellant: Shri R.S. Poonia, CA and Shri Rajat Chaudhary, Adv
For Respondent: Ms. Pooja Swaroop, CIT-DR
Hearing: 29/07/2025Pronounced: 24/10/2025

PER MANISH AGARWAL, AM: This appeal is filed by the assessee against the order of the Ld. Principal Commissioner of Income Tax, Delhi [‘PCIT, in short] dated 09.03.2025 passed u/s 263 of the Act arising out of order passed u/s 143(3) of the Income Tax Act, 1961 (hereinafter referred as ‘the Act’) dated 27.09.2022 for Assessment Year 2020-21. 2. The assessee has taken the following grounds of appeal:

“1. That on the facts and in the circumstances of the case and in law, the learned Principal Commissioner of Income Tax [PCIT], Delhi-4 erred in invoking Revision Proceeding u/s. 263 of the I.T. Act 1961 vide SCN dated 23.11.2023 is illegal and bad in Law. Kindly quash the consequential Rev

The order continues below.

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