Date of Order: November 22, 2022
This case revolves around the challenge against the Principal Commissioner of Income Tax’s (PCIT) decision to invoke Section 263 of the Income Tax Act, 1961 for the reassessment of Bikram Singh Panwar’s income for the AY 2014-15. The order was passed due to alleged errors that were prejudicial to the interests of the revenue.
Bikram Singh Panwar appealed against the revision order, arguing that the PCIT erred in assuming jurisdiction under Section 263. The assessee contested the PCIT’s decision on grounds including the failure to conduct necessary verifications and ignoring evidence that was already examined during the initial assessment.
The Income Tax Appellate Tribunal, Delhi, heard the appeal, noting several procedural issues, including the lack of opportunity given to the appellant and reliance on audit objections that preceded the PCIT’s order. The Tribunal recognized the need to ensure independent application of mind by the PCIT and not mere reliance on audit findings.
The Tribunal found that the PCIT might have not adequately applied independent thought in invoking Section 263 and remanded the case for a fresh examination. The Tribunal instructed the PCIT to provide a proper opportunity for the assessee to present his case, ensuring a fair hearing process.
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