Adani Wilmar Limited vs The Principal Commissioner of Income Tax-1, Ahmedabad

Parties Involved

Facts Summary

The assessee, Adani Wilmar Limited, filed an appeal against the order passed by the Principal Commissioner of Income Tax (PCIT) on 29.02.2024. The appeal was filed under section 263 of the Income Tax Act, 1961, concerning the assessment order for the Assessment Year 2018-19. The assessee had declared a total income of Rs.7,29,10,574/- and the assessment order was passed on 07.06.2021 at an assessed income of Rs.569,46,59,915/-. The PCIT issued a notice under section 263 of the Act regarding the notional guarantee income of Rs.99,72,600/- declared as 'other income'. The assessee argued that the notional income was not taxable and the Assessing Officer had already examined the issue. The assessee cited several judicial precedents to support their argument.…

Legal Issues

• 1. Whether the impugned order u/s. 263 of the Act passed by PCIT is bad in law?
• 2. Whether the PCIT erred in setting aside the assessment order?
• 3. Whether the PCIT erred in arriving at a conclusion without any basis?
• 4. Whether the twin conditions for assuming jurisdiction u/s.263 of the Act are satisfied?

Judgment Outcome

Decided in favour of Partly Assessee / Partly Revenue.

Precedents Relied Upon

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