PCIT cannot substitute AO’s view solely based on his interpretation of facts under Section 263: ITAT Rajkot

Vaidya Realities Vs PCIT (ITAT Rajkot) Introduction: The ITAT Rajkot recently deliberated on the Vaidya Realities vs PCIT case, centering around the Section 263 review of the AO’s assessment under the Income Tax Act, 1961. The appellant, a partnership firm engaged in real estate, contested the PCIT’s characterization of the assessment under Section 143(3) as erroneous and prejudicial to revenue. Detailed Analysis: The crux of the matter lies in the survey operation conducted under Section 133A, where the assessee admitted to receiving on-money in its real estate project. The AO, in...