M/S. PANCHMAHAL STEEL LTD.,,BARODA vs. THE PR. CIT-1, VADODARA

ITA 127/AHD/2021Status: DisposedITAT Ahmedabad27 September 2024AY 2010-11Bench: SMT. ANNAPURNA GUPTA (Accountant Member), SHRI SIDDHARTHA NAUTIYAL (Judicial Member)17 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that since the very basis for initiating the Section 263 proceedings was decided in favor of the assessee by CESTAT, the PCIT's order was liable to be set aside.

What were the facts?

The Principal Commissioner of Income Tax (PCIT) initiated proceedings under Section 263, considering the assessment order erroneous for not accounting for VAT on purchases. The assessee argued that the basis for these proceedings was later vacated by CESTAT, which held the purchases to be genuine.

What were the issues?

Whether the PCIT's order under Section 263 is sustainable when the underlying issue of genuine purchases was later decided in favor of the assessee by a higher tribunal.

Which sections of the Income-tax Act were involved?

Section 263,Section 143(3),Section 147

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Income Tax Appellate Tribunal, “A” BENCH, AHMEDABAD

Before: SMT. ANNAPURNA GUPTA & SHRI SIDDHARTHA NAUTIYAL

For Appellant: Shri Manish J Shah & Shri Rushin Patel, A.Rs
For Respondent: Shri R. N. Dsouza, CIT DR
Pronounced: 27.09.2024

PER SIDDHARTHA NAUTIYAL - JUDICIAL MEMBER:

Both appeals have been filed by the assessee against the order under Section 263 passed by the Ld. Principal Commissioner of Income Tax, (in short “Ld. PCIT”), Vadodara-1, vide orders dated 24.03.2021 for Assessment Years 2010-11 & 2011-12. Two assessment years are involved in the instant case but since the facts and issues for consideration are common, both appeals filed by the assessee are being disposed of together by way of a common order, for both the assessment years under consideration.

2.

The Assessee has taken the following grounds of appeal:- “1.

The order continues below.

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