Order u/s. 263 passed on issues not covered in show cause notice untenable: ITAT Delhi

Shail Gas Pvt Ltd Vs PCIT (ITAT Delhi) ITAT Delhi held that order under section 263 of the Income Tax Act passed on the issues for which no show cause notice has been issued is unjustifiable and hence liable to be quashed. Facts- The assessee filed return of income on 30.03.2016 declaring Nil income and the assessment u/s 143(3) was completed on 09.08.2017 assessing the total income at Rs.21,630/- after making disallowance u/s 14A of the Income Tax Act, 1961. Thereafter PCIT exercising its jurisdiction u/s 263 issued show cause notice on 24.03.2021 fixing matter for 26.03.2021 with the allegat...