2025 (6) TMI 909

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....he Act) is directed against the order dated 18.03.2024 passed by the Income Tax Appellate Tribunal "C" Bench, Kolkata (the Tribunal) in ITA No. 1278/Kol/2023 for the assessment year 2012-13. 2. The revenue has raised the following substantial questions of law for consideration : "i) Whether the Learned Tribunal has committed substantial error in law by quashing the order passed under Section 263 on 12.03.2019 ignoring the revisionary power of Principal Commissioner of Income Tax under Section 263 of the Income Tax Act, 1961 where the Commissioner shall have power to consider the order passed by the Assessing Officer as erroneous as the ground that the assessing office should have made further enquires ? ii) Whether the Learned Tribuna....

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....ment passed under Section 143 (3) of the Act is erroneous insofar as it is prejudicial to the interest of revenue and, accordingly, the assessment order was set aside and the direction was issued to the Assessing Officer to examine the credit appearing in the books of the assessee as share capital including premium and nature of transactions to the identity of the investors and its genuineness. Pursuant thereto, the Assessing Officer issued notice under Section 142 (1) dated 17.08.2016 and fix the case for hearing. The assessee was represented by their authorized representative in the hearing fixed on 19th August, 2016 and they produced a copy of the income tax return, audited accounts, details of directors, share trading, registered office....

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....at addition should be strengthen to pass the test of the appellate proceedings. We are to examine as to the correctness to such findings recorded by the PCIT. Identical finding was rendered by the PCIT in the case of the Principal Commissioner of Income Tax, Central-1 Vs. Rani Sati Agro Tech (P.) Ltd. reported in [2024] 161 taxmann.com 124 (Calcutta) and this Court held that such finding rendered by the PCIT was erroneous. Against the said judgment the revenue filed appeal before the Hon'ble Supreme Court which was dismissed as reported in [2025] 173 taxmann.com 919(SC). 7. In the light of the above decision, the findings rendered by the PCIT in the present appeal that any order passed subsequent to order under Section 263 must be in favou....