PCIT’s Section 263 Revision Unjustified Without Proving Error & loss to revenue

North Bihar Power Distribution Company Ltd. Vs PCIT (ITAT Kolkata) In the case of North Bihar Power Distribution Company Ltd. vs PCIT before the ITAT Kolkata, the Principal Commissioner of Income Tax (PCIT) invoked Section 263 of the Income Tax Act based on audit observations by the Revenue Audit Party. The PCIT questioned the assessment order and directed the Assessing Officer (AO) to re-examine specific issues, suggesting further enquiry and verification. However, the ITAT noted that while the show cause notice referred to audit observations, the final order did not. Furthermore, it was obse...