Case Law Details
Hasumatiben Jagdishbhai Patel Vs PCIT (ITAT Surat)
The Income Tax Appellate Tribunal (ITAT) Surat’s ruling in the case of Hasumatiben Jagdishbhai Patel vs. Principal Commissioner of Income Tax (PCIT) presents a noteworthy instance of judicial scrutiny over the scope and limits of the PCIT’s authority under Section 263 of the Income Tax Act, 1961. This case underlines the principle that the PCIT’s revisionary powers are not unlimited, especially in instances where the original assessments were conducted under ‘limited scrutiny’.
Introduction to the Case
Hasumatiben Jagdishbhai Patel, engaged in trading acid and chemicals, filed her return for the Assessment Year (AY) 2018-19, which was selected for limited scrutiny focusing on specific issues such as unsecured loans and asset-liability details. The Assessing Officer (AO) accepted her return based on the explanations and evidence provided. However, the PCIT initiated revision proceedings under Section 263, particularly questioning the non-disallowance of loan processing charges, an issue not covered under the original limited scrutiny criteria.
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