PCIT Vs Sampark Management Consultancy LLP (Allahabad High Court)
Allahabad High Court held that no substantial question of law arise since Tribunal after thorough scrutiny concluded that invocation of revisionary proceedings u/s. 263 by PCIT was without any base. Thus, appeal filed by revenue dismissed.
Facts- The present appeal is preferred by the revenue under Section 260A of the Income Tax Act, 1961 against order dated 22.03.2024 passed by the Income Tax Appellate Tribunal. Vide the said order, the appeal filed by the respondent-assessee against order dated 27.03.2022 passed by the Principal Commissioner of Income Tax under Section 263 of the Act pertaining to Assessment Year (‘AY’) 2017-18 has been allowed.
Conclusion- Held that once the Tribunal on thorough scrutiny of the record has come to the conclusion that the reasons recorded by the PCIT based on Explanation 2 to Section 263 pertaining to failure of the AO in making inquiries or verification was without any basis and contrary to the record and has allowed the appeal on finding that the order passed by the PCIT was without jurisdiction, in relation to which learned counsel for the appellants failed to point out any perversity, we do not find that the facts of the present case give rise to any substantial question of law as suggested by counsel for the appellants.
