Khanna Paper Mills Ltd. v. Dy. CIT

Parties Involved

Facts Summary

The case involves an appeal by Khanna Paper Mills Ltd. against the order of the Principal Commissioner of Income Tax (PCIT) under Section 263 of the Income Tax Act, 1961. The assessee, Khanna Paper Mills Ltd., a company engaged in the manufacture of paper and paper products, as well as the production, collection, and distribution of steam and electricity, filed its income tax return for the assessment years 2017-18 and 2018-19, claiming a deduction under Section 80IA amounting to Rs. 44,56,27,360/-. The PCIT invoked Section 263, alleging that the assessment order passed by the Assessing Officer (AO) was erroneous and prejudicial to the interest of revenue. The assessee argued that the AO had conducted a proper inquiry and that the PCIT's order was without jurisdiction.…

Legal Issues

• 1. Whether the order passed by the PCIT under Section 263 is justified?

Judgment Outcome

Decided in favour of Assessee.

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