NIRAV CHANDRAKANTBHAI BHALANI,BHAVNAGAR vs. THE PR. CIT, AHMEDABAD-1, AHMEDABAD
What did the Tribunal hold?
The Tribunal held that while the PCIT had jurisdiction under Section 263 due to inadequate inquiry by the AO, the PCIT failed to conclusively prove that the assessee made the alleged cash payment. The PCIT's order was based on inference from documents that did not directly implicate the assessee.
What were the facts?
The assessee purchased an immovable property and the Revenue alleged unaccounted cash payment beyond the agreement value based on seized documents. The Assessing Officer (AO) reopened the assessment but ultimately accepted the declared income after the assessee requested documentary evidence. The Principal Commissioner of Income Tax (PCIT) invoked Section 263, considering the AO's order erroneous and prejudicial to revenue.
What were the issues?
Whether the PCIT correctly invoked Section 263 when the AO's assessment was based on inadequate inquiry but the PCIT's revisionary order lacked conclusive evidence against the assessee.
Which sections of the Income-tax Act were involved?
Section 263,Section 147,Section 144,Section 143(2),Section 142(1),Section 68
AI-generated summary — verify with the full judgment below
Cases cited in this judgment(8)Show listHide 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.
- Malabar Industrial Co. Ltd. v. CIT2,943 citing243 ITR 83 · 2000 · SC · Read judgment
- GKN Driveshafts (India) Ltd. v. ITO1,349 citing259 ITR 19 · 2003 · SC · Read judgment
- Dhakeshwari Cotton Mills Ltd. v. CIT1,061 citing26 ITR 775 · 1954 · SC
- CIT v. Gabriel India Ltd.990 citing203 ITR 108 · 1993 · HC
- Kishanchand Chellaram v. CIT962 citing125 ITR 713 · 1980 · SC
- CIT v. Sunbeam Auto Ltd.897 citing332 ITR 167 · 2011 · HC · Read judgment
- CIT v. Krishna Capbox (P.) Ltd.49 citing372 ITR 310 · 2015 · HC
- Lakshmibai S. Patel v. CIT25 citing174 Taxmann 206 · 2008 · HC
Income Tax Appellate Tribunal, “ C ” BENCH, AHMEDABAD
Before: SHRI SIDDHARTHA NAUTIYAL & SHRI MAKARAND V. MAHADEOKAR
आदेश क� ��त�ल�प अ�े�षत/Copy of the Order forwarded to : 1. अपीलाथ� / The Appellant 2. ��यथ� / The Respondent. 3. संबं�धत आयकर आयु�त / Concerned CIT 4. आयकर आयु�त ( अपील ) / The CIT(A) / The Pr.CIT, Ahmedabad 5. �वभागीय ��त�न�ध , आयकर अपील�य अ�धकरण , राजोकट/DR,ITAT, Ahmedabad, 6. गाड� फाईल /Guard file.
More judgments on Section 263
- Gillette India Limited, Mumbai vs Principal Commissioner of Income Tax, JaipurITA 1316/JPR/2026[2018-19]Status: Disposed16 Oct 2026AY 2018-19
- Neo Structo Construction P. Ltd., Ahmedabad vs The Pr. CIT- 3, AhmedabadITA 1216/AHD/2026[2015-2016]Status: Disposed16 Oct 2026AY 2015-2016
- Vimal Harilal Baldania, Gandhidham vs The ITO Ward 2, GandhidhamITA 770/RJT/2025[2017-18]Status: Disposed15 Oct 2026AY 2017-18
- J.D. Marketing, Kolkata vs ITO, Ward 37(1), KolkataITA 1493/KOL/2026[2015-2016]Status: Disposed15 Oct 2026AY 2015-2016
- J.D. Marketing, Kolkata vs ITO, Ward 37(1), KolkataITA 1492/KOL/2026[2013-2014]Status: Disposed15 Oct 2026AY 2013-2014
Recent GST High Court judgments
Search GST case law →- Imtiyaz Shaikh Z Chorlekar vs. Salman ShaikhBombay · 21 Oct 2026
- Dr Babasaheb Ambedkar Marathwada University Thr Its Registrar Prashant S Amrutkar vs. Union Of INDIA Thr The Secretary And OthersBombay · 19 Oct 2026
- Babasaheb Ambedkar Marathwada University Thr Registrar Prashant S Amrutkar vs. Union Of INDIA Thr Secretary And OthersBombay · 19 Oct 2026
- Vinishma Technologies Private Limited vs. State Of KarnatakaKarnataka · 17 Oct 2026
- Vinishma Technologies Private Limited vs. State Of KarnatakaKarnataka · 17 Oct 2026