Section 263 Invalid as Presumptive Section 44AD Taxation Requires No Books

Neeraj Vs PCIT (ITAT Delhi) The Income Tax Appellate Tribunal (ITAT), Delhi, adjudicated two appeals concerning the validity of revisionary jurisdiction exercised under Section 263 of the Income Tax Act, 1961, and consequent assessment proceedings. The assessee, engaged in trading of clothes, had filed a return of income under Section 44AD declaring income on a presumptive basis without maintaining books of accounts. The return was initially accepted. Subsequently, the Principal Commissioner of Income Tax invoked Section 263, holding that the assessment order was erroneous and prejudicial to t...