M/S.HDB FINANCIAL SERVICES LTD.,,AHMEDABAD vs. THE PR. CIT-1 , AHMEDABAD

ITA 177/AHD/2022Status: DisposedITAT Ahmedabad24 January 2024AY 2017-18Bench: Shri Waseem Ahmed (Accountant Member), Shri T.R. Senthil Kumar (Judicial Member)22 pages
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What did the Tribunal hold?

The Tribunal held that the PCIT failed to prove the AO's order was both erroneous and prejudicial to revenue. The Tribunal found merit in the assessee's consistent method of claiming deductions and set aside the PCIT's order.

What were the facts?

The assessee claimed deductions for bad debts and under Section 80JJAA. The Assessing Officer (AO) accepted these claims. However, the Principal Commissioner of Income Tax (PCIT) invoked Section 263, believing the AO's order was erroneous and prejudicial to revenue, and directed further inquiries.

What were the issues?

Whether the PCIT was justified in invoking Section 263 when the AO had made inquiries and accepted the assessee's claims, and whether the AO's order was indeed erroneous and prejudicial to revenue.

Which sections of the Income-tax Act were involved?

Section 263,Section 143(3),Section 80JJAA,Section 36(1)(vii),Section 36(1)(viia)

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Income Tax Appellate Tribunal, AHMEDABAD “A” BENCH

Before: Shri Waseem Ahmed & Shri T.R. Senthil Kumar

PER : T.R. SENTHIL KUMAR, JUDICIAL MEMBER:-

This appeal is filed by the Assessee as against the Revision order dated 31.03.2022 passed by the Principal Commissioner of Income Tax, Ahmedabad-1, arising out of the assessment order passed under section 143(3) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) relating to the Assessment Year (A.Y) 2017-18. I.T.A No. 177/Ahd/2022 A.Y. 2017-18 Page No 2 M/s. HDB Financial Services Ltd. . vs. PCIT

2.

The assessee company is engaged in the business of lending of secured and unsecured retail loans, distribution of insurance products, telecalling and collection activities under Business Proce

The order continues below.

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