Manoj Sharma, a resident of Muzaffarnagar, Uttar Pradesh, filed an appeal against the revisional order by the Principal Commissioner of Income Tax, Dehradun, which was perceived as prejudicial to the revenue’s interests. This appeal challenges the jurisdiction of the Principal Commissioner under Section 263 of the Income Tax Act.
The appeal, documented as ITA No. 427/DEL/2021, for the assessment year 2010-11, was heard by the Delhi Bench ‘E’ of the Income Tax Appellate Tribunal. The case was argued by Advocate Deepak Kumar Gupta for the appellant and CIT-DR Subhra Jyoti Chakraborty for the respondent.
The tribunal’s detailed examination began with the questioning of the legitimacy of the revisional powers exercised under Section 263. The assessing officer’s decision, which disallowed speculation business losses and deemed a part of cash deposits as unsatisfactory, was also scrutinized.
The tribunal concluded that the assessing officer’s inquiries were sufficient and his conclusions reasonable, negating the need for a revision under Section 263. It was determined that the officer’s decision did not warrant the revisional interference that was sought, leading to the setting aside of the revisional order.
The tribunal’s final order, pronounced on September 5, 2023, allowed the appeal by Manoj Sharma, upholding the assessment made by the assessing officer and quashing the revisional order. This decision reinforces the tribunal’s approach towards reasonable and fair assessment practices, and the limits of revisional authority under the Income Tax Act.
This judgment highlights the importance of respecting the assessing officer’s autonomy and the bounded nature of revisional powers, emphasizing a balanced approach towards tax assessment and administrative revisions.
Appeal against Revisional Order by Manoj Sharma for Assessment Year 2010-11: ITA 427/DEL/2021
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