International Seaports (Haldia) Pvt. Ltd. Vs PCIT (ITAT Kolkata)
The assessee filed an appeal against the order of the Principal Commissioner of Income Tax (PCIT) passed under Section 263 of the Income-tax Act for Assessment Year 2016-17. The Tribunal first condoned a delay of 334 days in filing the appeal after finding that the delay occurred for bona fide and genuine reasons.
The dispute concerned the exercise of revisionary jurisdiction under Section 263 by the PCIT. The assessee had filed its return of income declaring total income of ₹1,73,50,108. The return was selected for scrutiny, and an assessment under Section 143(3) was completed assessing total income at ₹1,82,36,328. Subsequently, the PCIT examined the assessment records and observed that while the Assessing Officer had accepted the tax deducted at source (TDS) reflected in Form 26AS, the assessee had disclosed gross income of ₹73,65,07,503 as against gross receipts of ₹77,47,16,524 appearing in Form 26AS. According to the PCIT, this resulted in under-assessment of income amounting to ₹3,82,09,021, including excess carry forward of MAT credit of ₹1,60,01,393. On this basis, the PCIT concluded that the assessment order was erroneous and prejudicial to the interests of the Revenue, issued a show-cause notice under Section 263, considered the assessee’s reply, and directed the Assessing Officer to frame a fresh assessment after providing the assessee with an opportunity of hearing.
