Assessment Based on Jurisdictional HC Decision at Relevant Time Not Prejudicial to Revenue’s Interest

Lakhotia Diagnostic Service Pvt. Ltd Vs PCIT (ITAT Kolkata) ITAT Kolkata allowed appeals filed by Lakhotia Diagnostic Service Pvt. Ltd. against orders passed by the Principal Commissioner of Income Tax (PCIT) under Section 263 of the Income Tax Act, 1961, for assessment years 2018-19, 2019-20, and 2020-21. The dispute arose from an assessment order dated March 30, 2022, where the Assessing Officer (AO) had relied on the then-prevalent decision of the Calcutta High Court in CIT vs. Vijay Shree Ltd. However, the PCIT subsequently revised the order based on the Supreme Court’s ruling in Che...