Raj Impex Vs PCIT (ITAT Mumbai)
ITAT Mumbai Quashes PCIT’s 263 Orders—No Incriminating Material to Disturb 80IC Claim in Raj Impex Search Case
ITAT Mumbai quashed seven revisionary orders u/s 263 passed by PCIT against assessments completed u/s 153A for AYs 2011-12 to 2018-19. The Assessee, engaged in manufacturing essential oils & perfumery from aromatic herbs at its Himachal Pradesh unit, had claimed deduction u/s 80IC. After a search on 10.03.2021, AO completed the assessments u/s 153A r.w.s. 143(3) accepting the claim, with prior approval u/s 153D. Later, PCIT held that AO had not verified whether the products were covered in Schedule XIV & set aside the assessments directing fresh enquiries.
Tribunal noted that all years were unabated when the search occurred, & as per the Supreme Court ruling in PCIT v. Abhisar Buildwell (P) Ltd. (2023) 149 Taxmann.com 399, no addition or disallowance can be made in an unabated assessment u/s 153A unless based on incriminating material found during search. Since neither AO nor PCIT had referred to any such material, Tribunal held that PCIT’s action went beyond jurisdiction. It further observed that mere absence of elaborate discussion in AO’s order does not establish lack of enquiry, & PCIT cannot invoke s.263 simply to direct a roving verification.
