Case Law Details
Gulshan Kumar Vs PCIT (ITAT Delhi)
ITAT Delhi held that PCIT cannot assume revisional jurisdiction under section 263 of the Income Tax Act when in case of debatable issue, out of the two possible views, AO accepts one of the views.
Facts- The assessee is an individual who runs M/s. Gulshan Variety Store, Fatehabad. For the A.Y. 2018-19 he filed his return declaring income of Rs. 27,900/- on 01.02.2019. The case was selected for complete scrutiny. AO completed the assessment on 03.12.2020 u/s. 143(3) of the Act on total income of Rs. 27,900/- as returned by the assessee after taking into account all relevant material on record.
Thereafter, PCIT perused/examined the records of the assessee and found that in the ITR the assessee has claimed refund of TDS amount of Rs. 2,85,259/- deducted by HUDA u/s. 194A of the Act on the interest of Rs. 28,52,590/- received as enhanced compensation on the compulsory acquisition of his agricultural land. He further found that in the return of income the assessee has claimed interest of Rs. 2852590/- as exempt. He formed the opinion that the Ld. AO had completed the assessment without carrying out necessary and proper enquiry which he ought to have carried out in respect of the treatment of interest received on compensation or enhanced compensation.
Accordingly, PCIT set aside the assessment order with a direction to AO to pass an order afresh in accordance with law. Being aggrieved, assessee has preferred the present appeal.
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