Anshul Jain Vs PCIT (ITAT Agra Bench)
PCIT Cannot Revise a Plausible View or Invent a Missing Penalty-Section 263 Order Quashed in Demonetisation Deposit Case
A recalled appeal returns for complete adjudication
The assessee, Anshul Jain, challenged the PCIT’s order dated 31.03.2022 u/s 263 for AY 2017-18, whereby the assessment completed u/s 143(3) on 26.11.2019 was cancelled with a direction to frame a fresh assessment de novo.
The appeal had earlier been disposed of by the Tribunal on 24.06.2025 by restoring the matter to the PCIT for fresh adjudication. However, on a miscellaneous application filed by the assessee, the Tribunal recalled that order in its entirety on 29.04.2026 u/s 254(2).
The recall was necessitated because the earlier order had not considered the assessee’s reliance on the jurisdictional Allahabad High Court decision in ML Chains v. PCIT, 461 ITR 457, or adjudicated the specific objections challenging the validity of the revision proceedings. The entire appeal was therefore reheard afresh.
PCIT finds two alleged errors
The PCIT invoked section 263 on two counts. First, the assessee had deposited old currency notes aggregating to approximately Rs.2.06 lakh during the demonetisation period. He explained that Rs.98,000 represented business receipts, while the balance Rs.1,08,000 belonged to his wife & children, constituting their personal savings accumulated over several years.
