Apollo Tyres Ltd. Vs PCIT (Kerala High Court)
In the case of Apollo Tyres Ltd. vs Principal Commissioner of Income Tax, the Kerala High Court examined whether the revisional powers under Section 263 of the Income Tax Act, 1961, could be invoked when the Assessing Officer (AO) had allowed a deduction under Section 32AC after conducting proper inquiry. The assessee, Apollo Tyres Ltd., claimed deduction under Section 32AC for the assessment year 2014–15 concerning new assets acquired and installed during the financial year 2013–14. During the assessment proceedings, the AO raised queries about the eligibility of the claimed deduction, to which the assessee responded through detailed letters dated 12 December 2017 and 15 December 2017. Based on the explanations and documents provided, the AO accepted the assessee’s claim and issued the assessment order dated 23 October 2018.
Subsequently, the Principal Commissioner of Income Tax invoked the suo motu revisional jurisdiction under Section 263, alleging that the AO failed to notice that a significant portion of the assets had been purchased before 1 April 2013 and that the assessment order reflected a lack of proper inquiry and application of mind. The Commissioner set aside the assessment order for de novo consideration. The Income Tax Appellate Tribunal (ITAT), Cochin Bench, upheld the Commissioner’s action through its order dated 10 May 2024, leading the assessee to file the present appeal before the Kerala High Court.
