Difference of Opinion Not Enough to Invoke Revisionary Jurisdiction: ITAT Mumbai

Mridul Shashikant Khandelwal Vs PCIT (ITAT Mumbai)

Section 263 Revision Quashed for Lack of Specific Defects in Assessment; PCIT Cannot Order Fresh Assessment After Adequate Enquiry by AO; Assessment Approved Under Section 153D Not Erroneous Without Clear Findings; Roving and Fishing Enquiries Not Permitted Under Section 263; Vague Allegations of Inadequate Enquiry Fail Section 263 Test

The Mumbai Bench of the Income Tax Appellate Tribunal decided two connected appeals for Assessment Years 2018–19 and 2020–21, challenging revisionary orders passed by the Principal Commissioner of Income Tax under section 263 of the Income-tax Act. The assessments in question had been completed under section 143(3) read with section 153C following a search action on the Alankit Group in October 2019. During the search, certain documents were seized from the laptop of an associate of the Alankit Group, leading to the recording of a satisfaction note and issuance of notices under section 153C to the assessee. In response, the assessee filed returns declaring the same income as originally returned.

During assessment proceedings, the Assessing Officer issued multiple notices under section 142(1) and show cause notices, specifically seeking explanations regarding seized material, ledger accounts, and alleged transactions reflected in data extracted from the seized laptop. The assessee filed detailed replies denying any transactions with the Alankit Group and explaining the material referred to by the Assessing Officer. After considering the replies and material on record, the Assessing Officer accepted the returned income and passed the assessment order with prior approval of the Additional Commissioner under section 153D.