Zulu Merchandise Pvt. Ltd. Vs PCIT (ITAT Kolkata)
In the case of Zulu Merchandise Pvt. Ltd. vs. PCIT (ITAT Kolkata), the central issue was whether the Principal Commissioner of Income Tax (PCIT) correctly exercised revisionary powers under Section 263 of the Income Tax Act. The assessee challenged the revision of the assessment order passed under Sections 147 and 144, arguing that it was beyond the statutory limitation. The appeal was delayed by 353 days due to incorrect legal advice received by the company’s director. The ITAT found that the PCIT’s jurisdiction to revise the order was indeed time-barred, as the revision should have been within two years from the original assessment order under Section 143(1), not from the reassessment order. Citing relevant judicial precedents, the ITAT ruled that the PCIT’s action was invalid because the original assessment was completed well outside the allowable revision period. Consequently, the appeal was admitted despite the delay, and the ITAT overturned the PCIT’s revision decision. Also Read high court order: HC Dismisses Revenue Appeal; As no Question of Law Arising from Tribunal’s Order
FULL TEXT OF THE ORDER OF ITAT KOLKATA
The only issue raised by the assessee in the various grounds of appeal is against the exercise of revisionary jurisdiction u/s 263 of the Act by ld. Pr. CIT revising the assessment order passed u/s 147 r.w.s. 144 of the Income Tax Act, 1961 (in short the ‘Act’) which is beyond the limitation as provided in Section 263 sub-Section 2 of the Act.
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