PCIT Cannot Revise u/s 263 Where AO Made Due Enquiry on Demonetisation Cash Deposits

Ganga Electricals Vs PCIT (ITAT Pune) The Income Tax Appellate Tribunal (ITAT) Pune has addressed the matter of Ganga Electricals vs. PCIT, ruling on the legality of a revision order issued under Section 263 of the Income Tax Act, 1961. The core issue was whether the Assessing Officer (AO) had conducted sufficient inquiries during the original assessment, particularly regarding a large sum of cash deposited by the firm during the demonetization period. The ITAT ultimately quashed the revision order, holding that the AO’s initial assessment was not “erroneous and prejudicial to the interest...