Malay Multani Vs PCIT (ITAT Ahmedabad)
Dumb Document Can’t Trigger 263: ITAT Ahmedabad Quashes Revision on Unproved TDR Cash Payment
The ITAT quashed the Section 263 revision after holding that the Assessing Officer had already conducted proper enquiries into seized material, statements, bank records, and the TDR transaction. The Tribunal found that the PCIT relied on uncorroborated “dumb documents” from a third-party search, misread loose notings that lacked any nexus to the assessee, and even shifted allegations inconsistently between an individual and a firm. Since the AO had verified the transactions and found no unaccounted payments—and because revision cannot be invoked merely for a different opinion—the Section 263 order was struck down as legally unsustainable.
In this appeal, Malay Multani challenged the order passed u/s 263 by PCIT (Central), whereby the assessment completed u/s 153C r.w.s. 143(3) accepting returned income was set aside on the allegation that the AO failed to make proper enquiry into an alleged cash payment of ₹4.20 crore for purchase of TDR from Shri Rajesh Brahmbhatt. The search was conducted in the “Land Broker & Financier Group” & certain loose sheets found at the premises of Shri Suresh R. Thakkar allegedly contained the name “Malaybhai” with figures of ₹50 lakh & ₹3.70 crore. Based on these loose papers, the PCIT held that the AO had not examined the matter properly.
