Hollis Vitrified Pvt. Ltd. Vs PCIT (Gujarat High Court)
The Gujarat High Court heard an appeal under Section 260A of the Income Tax Act, 1961 against the order dated 12.02.2026 passed by the Income Tax Appellate Tribunal, Rajkot Bench in ITA No. 363/RJT/2024 for Assessment Year 2018-19. The appellant challenged the Tribunal’s decision upholding the Principal Commissioner of Income Tax’s (PCIT) exercise of revisional jurisdiction under Section 263 of the Act.
The appellant proposed four substantial questions of law. These questioned whether the Tribunal had erred in upholding the invocation of Section 263 in a case selected for limited scrutiny on the issue of large share premium despite the Assessing Officer having raised queries and received detailed replies; whether the PCIT had independently applied his mind before directing a de novo assessment concerning share capital and unsecured loans; whether the Tribunal had wrongly relied upon the assessment order passed pursuant to the PCIT’s Section 263 directions while determining the validity of the original revisional order; and whether such reliance affected the pending appeal before the Commissioner of Income Tax (Appeals).
The appeal was admitted on the proposed questions of law. With the consent of both parties and considering the Tribunal’s findings, the High Court took up the matter for final hearing.
