Case Law Details
Satbir Mahato Vs PCIT (ITAT Kolkata)
The appellant, Satbir Mahato, contested the order of the Principal Commissioner of Income Tax -5 Kolkata (PCIT) under Section 263. The crux of the matter lay in the disagreement regarding the exercise of jurisdiction by the PCIT without fulfilling the prerequisites under Section 263.
The PCIT’s contention stemmed from the significant cash deposits into the appellant’s bank accounts, triggering a re-assessment under Section 147. Despite the appellant’s assertion of innocence and lack of involvement in the transactions, the PCIT deemed the assessment erroneous and prejudicial to revenue interests.
The appellant argued that the assessment was based on a plausible view taken by the Assessing Officer (AO), justifying the application of 8% on total deposits. Additionally, the appellant highlighted the testimony of Devesh Upadhyaya, affirming ownership of the deposited funds, further supporting the AO’s decision.
In its deliberation, the Income Tax Appellate Tribunal (ITAT) acknowledged the AO’s diligent investigation and the corroborative evidence presented. It emphasized the plausibility of the AO’s approach and asserted that the PCIT’s disagreement with the AO’s view did not warrant the invocation of Section 263 jurisdiction.
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