Tarachand Mohanlal Agarwal Vs PCIT (ITAT Surat)
PCIT Lacks Jurisdiction During Pendency of CIT(A) Appeal: ITAT Surat Quashes Section 263 Revision on Bogus Purchase Issue
The Surat Bench of the ITAT allowed the assessee’s appeal for AY 2018-19 and quashed the order passed by the PCIT under section 263, holding that the revision was without jurisdiction. The case arose from additions made by the AO treating certain purchases as bogus, based on information received from GST authorities alleging issuance of fake invoices by specific entities. The assessee had already challenged these additions before the CIT(A), and the pendency of that appeal was undisputed.
The PCIT sought to invoke section 263 to direct taxation of the same additions under section 115BBE. The Tribunal held that, in view of Explanation 1(c) to section 263, the PCIT’s revisional powers do not extend to matters that are already the subject matter of appeal before the CIT(A). Since the issue of bogus purchases was pending appellate consideration, the PCIT lacked jurisdiction to revise the assessment on that very issue.
Accordingly, the ITAT set aside the impugned revisionary order and allowed the assessee’s appeal.
FULL TEXT OF THE ORDER OF ITAT SURAT
This appeal has been filed by the Assessee against the order dated 17.02.2025 passed by the Ld. Principal Commissioner of Income-Tax-1,Surat (“the Ld.PCIT in short), under Section 263 of the Income-tax Act, 1961 (“the Act”), relating to the Assessment Year 2018-19.
