PCIT Vs Sinhotia Metals And Minerals Pvt. Ltd. (Calcutta High Court)
Summary: The Revenue filed an appeal under Section 260A of the Income-tax Act, 1961 against the order dated 16 January 2019 passed by the Income Tax Appellate Tribunal, “C” Bench, Kolkata in ITA No. 889/Kol/2017 for Assessment Year 2012-13. The Revenue raised substantial questions concerning the exercise of revisionary jurisdiction under Section 263 of the Income-tax Act, 1961, particularly whether the Principal Commissioner of Income Tax (PCIT) had exercised that jurisdiction himself or at the instance of the Assessing Officer/Joint Commissioner of Income Tax (JCIT).
The Revenue contended before the High Court that the Principal Chief Commissioner of Income Tax had directed the JCIT to re-submit the proposal after examining the records and drawing satisfaction that the Assessing Officer’s order was erroneous and prejudicial to the interests of the Revenue. The Revenue further contended that the PCIT had not exercised jurisdiction under Section 263 merely at the instance of the JCIT and that the Tribunal had wrongly interpreted the material.
The High Court examined the Tribunal’s order and noted that the Tribunal had considered the decision of its co-ordinate Bench in the case of M/s. Rapayan Udyog in ITA No. 1073/Kol/2012, dated 28 October 2018. The Tribunal had also recorded that the Revenue had not controverted the contents of the letter of the Joint Commissioner of Income Tax dated 18 August 2016. According to the Tribunal, that letter clearly showed that the PCIT had called for a proposal from the JCIT/Assessing Officer for exercising jurisdiction under Section 263.
