Section 263 cannot be invoked on debatable issue of taxation of Interest under Land Acquisition Act

Sanjay Kumar Sharma Vs PCIT (ITAT Delhi) Introduction: In a recent judicial ruling, the Income Tax Appellate Tribunal (ITAT) Delhi delivered a significant verdict in the case of Sanjay Kumar Sharma vs. Principal Commissioner of Income Tax (PCIT). The case revolved around the taxation of interest received under Section 28 of the Land Acquisition Act, 1894. The ITAT’s decision provided clarity on the applicability of Section 263 of the Income Tax Act, 1961, in such matters. Background: Sanjay Kumar Sharma, the assessee, had filed his income tax return for the Assessment Year 2018-19, claim...