Shankar Roadways vs. Principal Commissioner of Income-tax

Parties Involved

Facts Summary

The assessee, Shankar Roadways, filed its return for the assessment year 2019-20 declaring a total income of Rs.39,48,650/-. A survey operation was conducted on 28.02.2018, and the case was selected for scrutiny. The assessment was completed on 25.09.2021 at an assessed income of Rs.75,35,353/-. The Principal Commissioner of Income Tax (PCIT) revised the order, stating that the Assessing Officer (AO) did not make adequate enquiries regarding the transportation expenses claimed by the assessee. The assessee appealed against this revision order. The Tribunal found that the PCIT did not point out any specific errors or discrepancies in the assessee's explanation and that the AO had adequately examined the transportation expenses. The Tribunal quashed the PCIT's order, holding that it was not sustainable as per law.…

Legal Issues

• 1. Whether the PCIT was justified in setting aside the assessment order on the ground of lack of enquiry by the AO?
• 2. Whether the PCIT correctly exercised his powers under section 263 of the Income Tax Act?

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

Similar Judgements

• Sh. Umed Singh Vs. PCIT

  Delhi Bench benchAY 2018-19Allowed

• Sushila Bhaurao Deshmukh v/s Principal Commissioner of Income Tax, Nagpur

  Nagpur bench

• DLF Midtown Pvt. Ltd. vs. Pr. CIT-1, New Delhi

• S.K.N Propmart Pvt. Ltd. Vs. Pr. CIT

  Delhi Bench ‘B’ New Delhi benchAY 2014-15Allowed

• Aarvee Denims & Exports Ltd. Vs. The Pr.CIT

  Ahmedabad bench

• Authorgen Technologies Private Limited vs. The PCIT

  Chandigarh bench