ITAT Sets Aside Section 263 Order Due to Adequate AO Inquiry & Lack of Revenue Prejudice

Mohmedyusufkhan Gulabkhan Farmwala Vs PCIT (ITAT Ahmedabad) The Income Tax Appellate Tribunal (ITAT) in Ahmedabad addressed an appeal filed by Mohmedyusufkhan Gulabkhan Farmwala against an order issued by the Principal Commissioner of Income Tax (PCIT). The core issue revolved around a ₹22.09 lakh cash deposit made by the assessee and the PCIT’s subsequent revision of the assessment order. The PCIT had initiated proceedings under Section 263 of the Income Tax Act, 1961, alleging that the Assessing Officer (AO) failed to conduct necessary inquiries regarding the source of the cash deposit. ...