PCIT’s Revision Invalid if It Targets Issues Beyond Scrutiny Selection Scope: ITAT Kolkata

Arabinda Paul Vs PCIT (ITAT Kolkata) The Income Tax Appellate Tribunal (ITAT) Kolkata has set aside the Principal Commissioner of Income Tax’s (PCIT) revisionary order under Section 263 of the Income Tax Act in the case of Arabinda Paul vs. PCIT. The assessee’s return for AY 2017-18, declaring ₹4.87 lakh in income, was selected for limited scrutiny to verify cash deposits. The Assessing Officer (AO) accepted the explanation and finalized the assessment under Section 143(3). However, the PCIT later observed unexplained loans and advances amounting to ₹78 lakh and issued a revision order...