Kosi Consultants Private Limited Vs ACIT/DICT (ITAT Ranchi)
Summary: The ITAT Ranchi allowed Kosi Consultants Private Limited’s appeal against the order dated 31.03.2026 passed by the ld. Pr.CIT (Central), Patna at Ranchi under Section 263 of the Income-tax Act for AY 2021-2022. During assessment, the Assessing Officer examined the assessee’s disclosure of sale of five flats to its sister concern for Rs.2,69,40,000/-, against which the assessee disclosed capital gain of Rs.1,06,06,667/- after reducing the purchase cost. The AO also referred the flats for valuation by the DVO and, after considering the DVO valuation, accepted the long-term capital gains disclosed by the assessee. Before the Tribunal, the assessee submitted that the PCIT had merely sought to substitute his opinion for that of the AO without identifying a specific error, whereas the Revenue contended that the AO had not adequately examined the relevant details. The Tribunal found that the assessment record showed that the AO had examined the purchase and sale of the flats and had even questioned their valuation and obtained DVO valuation. It held that the issue had been examined by the AO and that the Section 263 order was only for reverification of issues already considered during assessment, which was not permissible. Accordingly, the Tribunal quashed the Section 263 order and allowed the assessee’s appeal.
