Case Law Details
Majestic Properties Pvt. Ltd Vs PCIT (ITAT Delhi)
Introduction: The Income Tax Appellate Tribunal (ITAT) Delhi’s ruling in the case of Majestic Properties Pvt. Ltd Vs Pr. Commissioner of Income Tax (PCIT) has caught the attention of tax professionals and corporations alike. This case pertains to the revisionary powers of the PCIT under Section 263 of the Income Tax Act, 1961. The tribunal held that revisionary power under this section cannot be initiated solely based on audit objections. This article provides a comprehensive analysis of the case and its implications.
Non-Initiation of Penalty Under Section 271B: The Principal Commissioner of Income Tax (PCIT) contended that the Assessing Officer (AO) failed to initiate a penalty under Section 271B for not completing the tax audit on time. However, the ITAT Delhi ruled against this contention, citing that various judicial precedents confirm that Section 271B does not necessitate AO’s satisfaction for initiating penalties.
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