Indian City Properties Limited Vs PCIT (ITAT Kolkata)
The Tribunal held that the invocation of Section 263 on the proposal of the AO is not sustainable under the Act, as the PCIT failed to independently apply his mind and record satisfaction of the twin conditions. The assessment was completed under Section 143(3) r.w.s. 144B after verification of documents, and the returned income was consciously accepted by the Faceless Assessment Unit. Mere non-consideration of the DVO’s valuation report or a difference of opinion does not render the assessment erroneous and prejudicial to the interest of the revenue. Relying on the binding ratio of PCIT v. Reeta Lakhmani, PCIT v. Britannia Industries Ltd., and Sinforte (P) Ltd., the Tribunal quashed the impugned order passed under Section 263 and allowed the assessee’s appeal.
FULL TEXT OF THE ORDER OF ITAT KOLKATA
This is an appeal filed by the assessee against the order passed by the ld. Pr. CIT, Kolkata-2, dated 19.03.2025 for the assessment year 2020-2021.
2. The only issue raised by the assessee is against the invalid exercise of jurisdiction by the Pr. CIT, Kolkata-2 u/s.263 of the Act, thereby revising the assessment framed by the AO u/s.143(3) r.w.s.144B of the Act dated 23.09.2022.
