Ajay Kalishchandra Bohra Vs PCIT (ITAT Surat)
In the case of Ajay Kalishchandra Bohra vs. PCIT (ITAT Surat), the Income Tax Appellate Tribunal (ITAT) ruled in favor of the assessee, quashing the Principal Commissioner of Income Tax’s (PCIT) revision order under Section 263 of the Income Tax Act. The case arose after the PCIT challenged the re-assessment order passed by the Assessing Officer (AO) for the assessment year 2017-18. The AO had accepted the assessee’s explanation regarding transactions with Unique Polypack, which were initially questioned due to claims of bogus purchases. The assessee had provided detailed evidence, including sales invoices, bank statements, and VAT returns, to substantiate the legitimacy of the transactions. Despite this, the PCIT invoked Section 263, stating the AO had not adequately considered certain reports and failed to make necessary additions. However, the ITAT disagreed, affirming that the AO had conducted sufficient inquiries and made a reasonable, legally sustainable decision based on the evidence presented. The ITAT emphasized that Section 263 could only be invoked if the order was both erroneous and prejudicial to the interests of revenue, which was not the case here. Additionally, the ITAT found the PCIT’s revision order to be legally unsound, especially since a similar order for another assessment year involving the same issue was not revised. Consequently, the ITAT set aside the PCIT’s order, allowing the appeal in favor of the assessee.
