PCIT Cannot Invoke Section 263 on Presumed Commission Without Evidence

Kisan Agro Mart Private Limited Vs PCIT (ITAT Mumbai) Income Tax Appellate Tribunal (ITAT), Mumbai Bench, has quashed an order passed by the Principal Commissioner of Income Tax (PCIT), Mumbai-1, under Section 263 of the Income Tax Act, 1961, for Assessment Year 2011-12. The ITAT ruled that the PCIT’s assertion that the Assessing Officer (AO) ought to have made an addition for a presumed 3% commission under Section 69C was based purely on surmises and conjectures, lacking any cogent material on record. The appeal before the ITAT was filed by Kisan Agro Mart Private Limited, challenging t...