Mikado Realtors P. Ltd. Vs PCIT (ITAT Delhi)
The appeal in question was filed by Mikado Realtors P. Ltd. against the order dated 24th December 2020 passed by the Principal Commissioner of Income Tax (PCIT) under Section 263 of the Income Tax Act. The assessee raised multiple grounds, primarily challenging the PCIT’s jurisdiction and the validity of the revisionary order. The key issue revolved around the assertion that the assessment order dated 18th December 2018 was not subject to revision, as it was issued without jurisdiction. The assessee contended that the original order was illegal and could not be revised under Section 263. The core arguments were that the PCIT’s revision failed to adhere to statutory preconditions, specifically regarding notices under Section 143(2) and the applicability of amendments in Section 153C.
The ITAT Delhi, after reviewing the arguments, concluded that the PCIT erred in assuming jurisdiction under Section 263. It was found that the original assessment order was inherently invalid due to lack of proper issuance of notices and incorrect procedural handling, rendering it unsustainable. The Tribunal emphasized that if an assessment order is flawed from the beginning, it cannot be validated or revised through collateral proceedings like Section 263. The case further reinforced that an invalid order cannot be revised, as it does not meet the legal requirements for such revisions. Ultimately, the ITAT ruled in favor of Mikado Realtors P. Ltd., setting aside the PCIT’s revision order and allowing the appeal. The other grounds raised by the assessee were considered academic and were not addressed in detail.
