Ganesh Srinivasan Vs PCIT (ITAT Mumbai)
ITAT Mumbai held that invocation of revisionary jurisdiction under section 263 of the Income Tax Act on account of difference of opinion is not sustainable in law. Accordingly, revision order passed by PCIT is liable to be quashed.
Facts- The assessee is a Senior Counsel practicing before the Hon’ble Supreme Court of India. For the relevant assessment year, the assessment was completed u/s. 143(3) of the Act, wherein the Ld. AO accepted the returned income and also accepted the reconciliation of the difference between the income reported in Form 26AS and the income declared by the assessee in the return.
Subsequently, the Ld. PCIT, by invoking the provisions of section 263 of the Act, issued a show cause notice questioning the non-reconciliation of the assessee’s professional receipts with the Annual Information Report (AIR)/Form 26AS, amounting to Rs. 1,76,66,250/-. PCIT observed that the corresponding professional income in respect of which TDS was claimed had not been offered to tax in the relevant assessment year. Concluding that the assessment order passed by AO was erroneous and prejudicial to the interest of the revenue. PCIT passed a revisionary order u/s. 263. Being aggrieved, the present appeal is filed.
