RBL Bank Limited Vs PCIT (ITAT Pune Bench)
An Enquiry in the Quashed Assessment Cannot Rescue the De Novo Order: Revision u/s 263 Against RBL Bank Upheld
Background
The assessee, RBL Bank Limited, was a scheduled commercial bank operating through various business segments, including corporate & institutional banking, commercial banking, financial inclusion, treasury & financial-market operations.
For AY 2020-21, the bank filed its return declaring total income of ₹1,118.42 crore. The case was selected for scrutiny under CASS. After examining various issues, the AO passed an assessment order u/s 143(3) r.w.s. 144B on 24.09.2022, determining total income at ₹1,530.91 crore.
The assessee challenged this order before the Bombay High Court on the ground that no personal hearing had been granted, thereby violating the principles of natural justice. By order dated 08.08.2023, the High Court quashed the assessment & remanded the matter to the faceless AO for de novo adjudication in accordance with law.
Pursuant to the remand, the AO issued fresh notices u/s 142(1) & completed the de novo assessment u/s 143(3) r.w.s. 260 & 144B on 28.10.2023, assessing income at ₹1,357.85 crore.
Two Claims Attract the Pr. CIT’s Attention
On examining the assessment records, the Pr. CIT found that the AO had accepted two substantial claims without undertaking proper enquiry in the de novo proceedings.
