PCIT-9 Vs Pramod Kumar Tekriwal (Calcutta High Court)
The Calcutta High Court dismissed the Revenue’s appeals filed under Section 260A of the Income Tax Act, 1961, challenging the common order of the Income Tax Appellate Tribunal, “B” Bench, Kolkata in ITA No. 1136/Kol/2018 for assessment year 2010-11. The Revenue questioned whether the ITAT was correct in holding that the revisionary jurisdiction exercised under Section 263 was not in accordance with the facts and evidence on record, and whether the Assessing Officer had adopted one possible view where, according to the Revenue, only one view was possible under Section 69C of the Act.
Read SC Judgment in this case: SC Dismissed Revenue’s Section 263 SLP as AO Had Taken a Plausible View
The High Court noted that the Tribunal had examined the issue of exercise of Section 263 jurisdiction in detail and had considered the decision of the Supreme Court in Malabar Industrial Co. Ltd. vs. CIT [2000] 243 ITR 83 [SC]. The Tribunal had found that the Assessing Officer made an addition of 2% to the gross profit over and above the gross profit rate of 4.63%, resulting in a total gross profit rate of 7.63%. After completing the assessment, the Assessing Officer addressed the PCIT stating that certain error had occurred in the assessment order and requested review under Section 263.
