Lakshmibai Chandrakant Vaijapure Vs. PCIT, Nashik -1

Parties Involved

Facts Summary

The appellant, engaged in the business of trading in unprocessed foodgrains, filed a return of income for the Assessment Year 2019-20 declaring a total income of Rs.95,25,020/-. Based on a survey conducted under section 133A of the Income-tax Act, 1961, the appellant declared excess stock and cash amounting to Rs.83,11,440/- and Rs.6,89,200/- respectively, which were credited to the profit and loss account. The Assessing Officer accepted the returned income. However, the Principal Commissioner of Income Tax (PCIT) issued a show cause notice under section 263 of the Act, alleging that the assessment order was erroneous and prejudicial to the interest of the Revenue. The PCIT rejected the appellant's submissions and set aside the assessment order, directing the Assessing Officer to frame the assessment afresh. The appellant filed an appeal before the Tribunal.…

Legal Issues

• 1. Validity of the revision exercised by the PCIT under section 263 of the Act.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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