2026 (8) TMI 479

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....t Year (A.Y.) 2022-23 passed in his revisional jurisdiction u/s. 263 of the Income Tax Act [hereinafter referred as "the Act"]. 2. The brief facts of the case are that the assessee had filed his return of income for A.Y. 2022-23 on 06.10.2022 declaring income of Rs. 6,06,500/-. The assessee had disclosed contract receipt of Rs. 3,38,54,329/- in the P&L account and the net profit disclosed by the assessee as per audited account was Rs. 6,41,982/-. The assessee had also claimed credit for TDS of Rs. 3,38,545/- in respect of this contractual income. The contractual receipt of the assessee was from entities of Urmin Group, in which a search action u/s. 132 of the Act was carried out on 07.03.2022 and the premises of the assessee was also cov....

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....d. PCIT, the assessee is in appeal before us. The following grounds have been taken in this appeal: 1. The Learned Pr. Commissioner of Income Tax, (Central), Ahmedabad has erred in passing an order u/s. 263 of the LT. Act, 1961 setting aside the Assessment Order passed uis.143(3) of the LT. Act, 1961 dtd.21.03.2024 which is neither erroneous nor prejudicial to the interest of the Revenue. 2. The Learned Pr. Commissioner of Income Tax, (Central), Ahmedabad has erred in passing an order u/s.263 of the LT Act, 1961 for limited purpose of initiating penalty proceedings u/s. 270A of the Act holding that the Assessing Officer has not recorded satisfaction for initiating penalty proceedings u/s. 270A of the I.T. Act, 1961 ....

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.... assessee and the only finding given in the assessment order was that the TDS credit claimed on the contractual receipts was to be disallowed. Having given this finding, the AO was not correct in accepting the returned income of Rs. 6,06,500/- in respect of the contractual receipts, which were held as bogus. In the computation of income, the AO had proceeded from total income of Rs. 6,06,500/- as per return and made further addition of Rs. 3,38,545/- in respect of disallowance of TDS credit and thus the total income was arrived at Rs. 9,45,045/- in the assessment order. In fact, the TDS credit claimed by the assessee was already part of the turnover of the assessee and was included in the income as disclosed in the return. 5. The working....