Section 263 Proceedings Quashed as AO’s Order Was Not Erroneous in Jewellery Case

Ajay Kumar Singh Vs PCIT (ITAT Delhi) Revision under section 263 is not sustainable where the very basis adopted by the PCIT fails, namely, that jewellery expenditure incurred by a company could be taxed as a perquisite in the hands of an individual without establishing an employer-employee relationship. Income Tax Appellate Tribunal (ITAT), Delhi, allowed the appeal of an assessee against the revisionary order passed under Section 263 of the Income Tax Act for AY 2019-20. The case arose after a search operation in which jewellery purchase bills amounting to Rs. 31.28 lakh were found at the as...