Arihant Retail Private Limited v. Principal Commissioner of Income Tax

Parties Involved

Facts Summary

Arihant Retail Private Limited, a retail trading company, filed an income return declaring a loss for the assessment year 2018-19. The company was selected for complete scrutiny under CASS due to substantial purchases from suppliers who were either non-filers or had filed non-business ITRs. The Assessing Officer (AO) passed an order under section 143(3) disallowing 10% of the purchases as unexplained expenditure. The Principal Commissioner of Income Tax (PCIT) issued a show-cause notice under section 263, seeking to verify the remaining 90% of the purchases. The assessee appealed against the PCIT's order, arguing that the AO's order was not erroneous or prejudicial to the revenue's interest.…

Legal Issues

• 1. Whether the revision order passed by the PCIT under section 263 of the Act is justified.

Judgment Outcome

Decided in favour of Partly Assessee / Partly Revenue.

Similar Judgements

• Authorgen Technologies Private Limited vs. The PCIT

  Chandigarh bench

• Pravesh Kumar Jaiswal Vs ITO, Ward-62(1), Kolkata

  Kolkata Bench benchAY 2021-2022Allowed

• ITO vs. Ramlal Manekchand HUF

  Ahmedabad bench

• ITA No.3988/Mum/2025

  Mumbai Bench benchAY 2021-22Dismissed

• Income Tax Officer Vs. Mahesh Kumar Aggarwal

  Delhi Bench ‘A’, New Delhi benchAY 2021-22Dismissed

• ITA No.987/Del/2025 The Silk Factory (AY: 2022-23)