Mukul Rohatgi Vs ACIT (ITAT, Delhi Bench)
Promoted Out, Powers Locked Out: ITAT Strikes Down Section 263 Revision Against Mukul Rohatgi
Summary: In Mukul Rohatgi v. ACIT, ITA No. 3714/Del/2026, decided on 28 August 2026, the Delhi Bench of the Income Tax Appellate Tribunal quashed a revisional order u/s 263 for AY 2022-23 on two independent grounds. First, the officer who initiated revision had already been promoted & formally posted as CCIT, but issued the notice in the capacity of PCIT without authority from the CBDT. Secondly, the original assessment was neither erroneous nor prejudicial because the AO had examined the annual letting value of the assessee’s properties & adopted a legally plausible view.
Relevant Facts
The assessee, a designated Senior Advocate practising before the Supreme Court & various High Courts, filed his return declaring income of approximately ₹161.61 crore. The case was selected for scrutiny, during which several notices u/s 142(1) were issued. The assessee furnished replies, details of immovable properties, their ownership, usage & treatment of annual letting value.
Assessment was completed u/s 143(3) read with section 144B on 28 March 2024. The AO made a disallowance of ₹1,76,30,842 u/s 14A read with Rule 8D, which was subsequently deleted by the CIT(A).
