Section 263 Action Set Aside Due to Sufficient Assessment Verification

PCIT Vs Anjali Singhal (Allahabad High Court) The Revenue filed an appeal under Section 260A challenging the Tribunal’s order that had set aside the Principal Commissioner’s revisional order under Section 263 for Assessment Year 2018-19. The Tribunal had allowed the assessee’s appeal, holding that the Assessing Officer (AO) had made necessary inquiries during scrutiny assessment, where low income in comparison to large commission receipts was the trigger for examination. The AO had raised queries, examined expenses, and ultimately disallowed 25% of certain expenses, resulting in an addit...