AI Insights
The case involves twenty-one appeals filed by different assessees against the orders of the Principal Commissioner of Income Tax (PCIT) under section 263 of the Income Tax Act. The appeals were consolidated due to the commonality of the issues and facts involved. The PCIT had issued revision directions based on unresponded show-cause notices, claiming the assessments were erroneous and prejudicial to the interests of the Revenue. However, the Tribunal found that the PCIT did not provide any categorical findings or discuss the relevant errors and prejudices in the impugned orders. The Tribunal referenced the Supreme Court's decision in Malabar Industries Ltd. vs. CIT and the Allahabad High Court's decision in M. L. Chains Vs. PCIT, which clarified the conditions under which section 263 can be invoked.
Appeal Details
Counselvise Citation
[2025] 140 COUNSELVISE.COM (IT) 38658 (ITAT-AGRA)
Assessee PAN
Bench
Appeal Number
CRN Number
Appellant
Respondent
Appeal Type
Income Tax Appeal
Pronouncement Date
21-02-2025
Appeal Filed By
Assessee
Order Result
Allowed
Bench Allotted
DB
Assessment Year
2017-2018
Judgement Text
"IN THE INCOME TAX APPELLATE TRIBUNAL AGRA BENCH, AGRA Before Sh. Satbeer Singh Godara, Judicial Member & Sh. Manoj Kumar Aggarwal, Accountant Member ITA No. 33/Agr./2023 : Asstt. Year : 2012-13 Rajendra Singh Chauhan, Gram Tumen, Ashok Nagar, Madhya Pradesh-473332 Vs PCIT, Gwalior (APPELLANT) (RESPONDENT) PAN No. APBPC5597E Assessee by : Sh. Pankaj Garg, Adv. Revenue by : Sh. Shailenra Srivastava, Sr. DR ITA No. 46/Agr./2021 : Asstt. Year : 2015-16 M/s RBA Systems (P) Ltd., F-9/35, Surya Kiran Building, Sanjay Place, Agra, U.P.-282002 Vs PCIT, Agra-1, Agra, U.P.-282002 (APPELLANT) (RESPONDENT) PAN No. AAGCR3680L Assessee by : Sh. Anurag Sinha, Adv. Revenue by : Sh. Sukesh Kumar Jain, CIT-DR ITA No. 39/Agr./2021 : Asstt. Year : 2016-17 Ashok Kumar Agarwal, 137, Mohalla Ganj, Firozaba, U.P.-283203 Vs PCIT, Agra-1, Agra, U.P.-282002 (APPELLANT) (RESPONDENT) PAN No. AAWPA0325J Assessee by : Sh. Pankaj Garg, Adv. Revenue by : Sh. Sukesh Kumar Jain, CIT-DR Date of Hearing: 10.02.2025 Date of Pronouncement: .02.2025 ITA No. 39/Agr./2022 : Asstt. Year : 2016-17 Sh. Siddhi Vinayak Developers, B-7, Poonam Complex, Jeoni Mandi, Agra, U.P.- 282004 Vs PCIT-1, Agra, U.P.-282002 (APPELLANT) (RESPONDENT) PAN No. ACDFS3072P Assessee by : Sh. Navin Garg, Adv. Revenue by : Sh. Sukesh Kumar Jain, CIT-DR ITA No. 33/Agr./2022 & 20 others 2 ITA No. 40/Agr./2022 : Asstt. Year : 2012-13 Praveen Kumar Verma, 31/21, Tarkari Gali, Lohamandi, Agra, U.P.-282002 Vs PCIT-1, Agra, U.P.-282002 (APPELLANT) (RESPONDENT) PAN No. AFOPV7592M Assessee by : Sh. Rajesh Malhotra, CA Revenue by : Sh. Sukesh Kumar Jain, CIT-DR ITA No. 47/Agr./2022 : Asstt. Year : 2017-18 People’s Heritage Hospital Pvt. Ltd., 7/52, A1, Bye Pass Road, Jawahar Nagar, Agra, U.P.-282002 Vs PCIT-1, Agra, U.P.-282002 (APPELLANT) (RESPONDENT) PAN No. AAICP5155G Assessee by : None Revenue by : Sh. Sukesh Kumar Jain, CIT-DR ITA No. 49/Agr./2022 : Asstt. Year : 2017-18 Girjesh Gupta, Karhal Road, Dariba, Mainpuri, U.P.-205001 Vs PCIT-1, Agra, U.P.-282002 (APPELLANT) (RESPONDENT) PAN No. AIAPG8808J Assessee by : None Revenue by : Sh. Sukesh Kumar Jain, CIT-DR ITA No. 50/Agr./2022 : Asstt. Year : 2017-18 Goyal Brothers, Mandi Motiganj, Mainpuri, U.P.-205001 Vs PCIT-1, Agra, U.P.-282002 (APPELLANT) (RESPONDENT) PAN No. AAQFG2717G Assessee by : Sh. Prathna Jalan, CA Revenue by : Sh. Sukesh Kumar Jain, CIT-DR ITA No. 66/Agr./2022 : Asstt. Year : 2017-18 Big Shoes, 91-92, Shree Ram Plaza Shoe Complex, Hing Ki Mandi, Agra, U.P.-282003 Vs PCIT-1, Agra, U.P.-282002 (APPELLANT) (RESPONDENT) PAN No. AAEFB2942E ITA No. 67/Agr./2022 : Asstt. Year : 2017-18 ITA No. 33/Agr./2022 & 20 others 3 Jones Traders, 8-35, Shoe Market, Hing Ki Mandi, Agra, U.P.-282003 Vs PCIT-1, Agra, U.P.-282002 (APPELLANT) (RESPONDENT) PAN No. AADFJ1407D Assessee by : Sh. Gaurav Goyal, CA Revenue by : Sh. Sukesh Kumar Jain, CIT-DR ITA No. 81/Agr./2022 : Asstt. Year : 2017-18 Indu Gold & Diamons Pvt. Ltd., 3/64, Jain Mandir, Gali Lekhraj Nagar, Aligarh, U.P.-202001 Vs PCIT-1, Agra, U.P.-282002 (APPELLANT) (RESPONDENT) PAN No. AADCI3721Q Assessee by : Sh. Pankaj Garg, Adv. Revenue by : Sh. Sukesh Kumar Jain, CIT-DR ITA No. 83/Agr./2022 : Asstt. Year : 2017-18 OM Ice and Chilling Plant, 21/276, Chaudhry Mehtab Singh Compound, Jeoni Mandi, U.P.-282004 Vs PCIT-1, Agra, U.P.-282002 (APPELLANT) (RESPONDENT) PAN No. AABFO1699J Assessee by : Sh. Anurag Sinha, Adv. Revenue by : Sh. Sukesh Kumar Jain, CIT-DR ITA No. 84/Agr./2022 : Asstt. Year : 2017-18 Ram Murti, D-53, Industrial Estate, Aligarh, U.P.-202001 Vs PCIT-1, Agra, U.P.-282002 (APPELLANT) (RESPONDENT) PAN No. AAYPM9991Q Assessee by : None Revenue by : Sh. Sukesh Kumar Jain, CIT-DR ITA No. 85/Agr./2022 : Asstt. Year : 2017-18 Shobhit Bansal, 13, Gailana Road, Kailash Vihar, Agra, U.P.-282006 Vs PCIT-1, Agra, U.P.-282002 (APPELLANT) (RESPONDENT) PAN No. AFYPB0516M Assessee by : Sh. Gourav Goyal, CA Revenue by : Sh. Sukesh Kumar Jain, CIT-DR ITA No. 33/Agr./2022 & 20 others 4 ITA No. 97/Agr./2022 : Asstt. Year : 2017-18 Shiva Traders, 2/262, Transport Nagar, Agra, U.P.-282002 Vs PCIT-1, Agra, U.P.-282002 (APPELLANT) (RESPONDENT) PAN No. AAYFS0940D Assessee by : Sh. Prathna Jalan, CA Revenue by : Sh. Shailender Shrivastava, Sr. DR ITA No. 153/Agr./2023 : Asstt. Year : 2017-18 Manjhi Brick Field, C/o J N Goyal & Company, C-162, Ranjeet Nagar, Bharatpur, Rajasthan-321001 Vs PCIT-1, Agra, U.P.-282002 (APPELLANT) (RESPONDENT) PAN No. AAVFM9124G Assessee by : None Revenue by : Sh. Sukesh Kumar Jain, CIT-DR Date of Hearing: 12.02.2025 Date of Pronouncement: .02.2025 ITA No. 26/Agr./2022 : Asstt. Year : 2017-18 M/s Tej Shoe Tech, 10-11th Mile Stone, Agra Mathura Road, Agra, U.P.-282007 Vs PCIT-1, Agra, U.P.-282002 (APPELLANT) (RESPONDENT) PAN No. AAAFT7902L Assessee by : Sh. Sahib P. Satsangi, Adv. Revenue by : Dr. Arun Kumar Yadav, CIT-DR ITA No. 139/Agr./2024 : Asstt. Year : 2017-18 Asha Gupta, Mohalla Mahajnan, Bhongaon, Bewar, U.P.-205001 Vs PCIT-1, Agra, U.P.-282002 (APPELLANT) (RESPONDENT) PAN No. AKEPG8119Q Assessee by : Ms. Prarthana Jalan, CA . Revenue by : Dr. Arun Kumar Yadav, CIT-DR Date of Hearing: 19.02.2025 Date of Pronouncement: .02.2025 ITA No.98/Agr./2022 : Asstt. Year : 2017-18 ITA No. 33/Agr./2022 & 20 others 5 Lekhraj and Associates, 36, New Ashok Nagar, Agra, U.P.-282002 Vs PCIT-1, Agra, U.P.-282002 (APPELLANT) (RESPONDENT) PAN No. AACFL1298B Assessee by : Sh. Prathna Jalan, CA Revenue by : Sh. Shailender Shrivastava, CIT-DR ITA No. 107/Agr./2022 : Asstt. Year : 2017-18 Prashant Kumar Mangal, 703, Padam Deep Tower, G-10/8, Sanjay Place, Agra, U.P.-282002 Vs PCIT-1, Agra, U.P.-282002 (APPELLANT) (RESPONDENT) PAN No. ACVPM0428R Assessee by : Sh. Anurag Sinha, Adv. Revenue by : Sh. Shailender Shrivastava, CIT-DR Date of Hearing: 20.02.2025 Date of Pronouncement: .02.2025 ITA No. 107/Agr./2023 : Asstt. Year : 2017-18 Sh. Manoj Agarwal, 3-B/19, Rati Talai, Banswara (Rajasthan)327001. Vs PCIT-1, Agra, U.P.-282002 (APPELLANT) (RESPONDENT) PAN No. AFSPA3819E Assessee by : Sh. Rajendra Sharma, Adv. Revenue by : Sh. Sukesh Kumar Jain, CIT-DR Date of Hearing: 13.02.2025 Date of Pronouncement: 21.02.2025 ORDER Per Bench: These twenty one assessees as many appeals involving the following relevant details thereof stand tabulated as under: Sl. N o. IT A N os . A. Y . Ap pella nt Re s pon den t Orde r pa s se d a gains t P roce e dings u/ s 1. 33/ A g r./ 202 3 201 2- 13 Ra j en d ra Singh Ch a uh a n P CIT P CIT , G wa lior’ s c as e N o. P r. CIT / Gw l/2 63/ 2 0 21- 2 2 dat e d 1 4. 0 3 .2 0 22 26 3 2. 40/ A g r./ 202 2 201 2- 13 P ra ve en Kuma r Ve rma P CIT- 1 P CIT , A g ra- 1’ s c as e No . P CIT -1 / A gra/ IT O (OSD) / 263/ P KV/ 2 0 2 1- 22 Da te d 31 .0 3. 20 22 26 3 3. 46/ A g r./ 202 1 201 5- 16 RBA Sys te ms ( P) Lt . P CIT- 1 P CIT , A gra - 1’s , D IN & orde r No . ITB A/ RE V/ F/ REV5 / 2 02 0 - 21/ 1 0 32 0 6 040 7( 1) , dat e d 3 1. 0 3 .2 0 21 14 3( 3) 4. 39/ A g r./ 202 1 201 6- 17 As hok Kuma r Agra wa l P CIT- 1 P CIT , A gra - 1’s , D IN & orde r No . ITB A/ RE V/ F/ REV5 / 2 02 0 - 21/ 1 0 31 4 8 231 0( 1) , dat e d 1 5. 0 3 .2 0 21 14 3( 3) 5. 39/ A g r./ 202 2 201 6- 17 Sh ri S idh i Vinay ak Dev elo pe rs P CIT- 1 P CIT , A gra - 1’s , D IN & orde r No . ITB A/ RE V/ F/ REV5 / 2 02 0 - 21/ 1 0 32 0 5 494 5( 1) , dat e d 3 1. 0 3 .2 0 21 14 3( 3) 6. 26/ A g r./ 202 2 201 7- 18 Te j Sh oe Te ch P CIT- 1 P CIT , A g ra- 1’ s c as e No . P CIT -1 / Ag ra / ITO ( OSD) / 26 3/ Te j/ 2 0 21- 22 Da te d 31 .0 3. 20 22 26 3 ITA No. 33/Agr./2022 & 20 others 6 7. 47/ A g r./ 202 2 201 7- 18 Pe ople’ s Herit age Hos pita l Pv t . Lt d. P CIT- 1 P CIT , A g ra- 1’ s c as e No . P CIT -1 / Ag ra / ITO ( OSD) / 26 3/ PHH PL / 202 1 - 22 Da te d 31 .0 3. 20 22 26 3 8. 49/ A g r./ 202 2 201 7- 18 G irj es h G upta P CIT- 1 P CIT , A g ra- 1’ s c as e No . P CIT -1 / Ag ra / ITO ( OSD) / 26 3/ G irje s h Gu pta / 2 0 21- 22 Da te d 31 .0 3. 20 22 26 3 9. 50/ A g r./ 202 2 201 7- 18 G oya l B roth e rs P CIT- 1 P CIT , A g ra- 1’ s c as e No . P CIT -1 / Ag ra / ITO ( OSD) / 26 3/ G oya l / 202 1 - 22 Da te d 31 .0 3. 20 22 26 3 10. 66/ A g r./ 202 2 201 7- 18 Big S h oes P CIT- 1 P CIT , A g ra- 1’ s c as e No . P CIT -1 / Ag ra / ITO ( OSD) / 26 3/ Big Sh oes / 202 1 - 22 Da te d 31 .0 3. 20 22 26 3 11. 67/ A g r./ 202 2 201 7- 18 J one s T ra de rs P CIT- 1 P CIT , A g ra- 1’ s c as e No . P CIT -1 / Ag ra / ITO ( OSD) / 26 3/ J T/ 2 02 1- 2 2 Da te d 31 .0 3. 20 22 26 3 12. 81/ A g r./ 202 2 201 7- 18 In du G ol d & diam on ds Pv t. L t d. P CIT- 1 P CIT , A g ra- 1’ s c as e No . P CIT -1 / Ag ra / ITO ( OSD) / 26 3/ IG D/ 2 02 1- 2 2 Da te d 31 .0 3. 20 22 26 3 13. 83/ A g r./ 202 2 201 7- 18 OM Ic e Ch ill in g Plan t P CIT- 1 P CIT , A g ra- 1’ s c as e No . P CIT -1 / Ag ra / ITO ( OSD) / 26 3/ Om Ic e & Ch ill in g Pl an t/ 202 1- 22 Da te d 31 .0 3. 20 22 26 3 14. 84/ A g r./ 202 2 201 7- 18 Ram Mu rt i P CIT- 1 P CIT , A g ra- 1’ s c as e No . P CIT -1 / Ag ra / ITO ( OSD) / 26 3/ Ram Mu rt i/ 20 21- 2 2 Da te d 31 .0 3. 20 22 26 3 15. 85/ A g r./ 202 2 201 7- 18 Sho bhi t Ban sa l P CIT- 1 P CIT , A g ra- 1’ s c as e No . P CIT -1 / Ag ra / ITO ( OSD) / 26 3/ SB/ 2 02 1- 22 Da te d 31 .0 3. 20 22 26 3 16. 97/ A g r./ 202 2 201 7- 18 Shiva T ra de rs P CIT- 1 P CIT , A g ra- 1’ s c as e No . P CIT -1 / Ag ra / ITO ( OSD) / 26 3/ M/ s Sh iv a T ra de rs / 20 2 1- 2 2 Da te d 31 .0 3. 20 22 26 3 17. 98/ A g r./ 202 2 201 7- 18 Le kh raj a n d As sociate s P CIT- 1 P CIT , A g ra- 1’ s c as e No . P CIT -1 / Ag ra / ITO ( OSD) / 26 3/ Kek h raj / 202 1 - 22 Da te d 31 .0 3. 20 22 26 3 18. 107 / A gr./ 20 22 201 7- 18 P ra sh a nt Kuma r Ma n ga l P CIT- 1 P CIT , A g ra- 1’ s c as e No . P CIT -1 / Ag ra / ITO ( OSD) / 26 3/ P KM/ 2 02 1- 22 Da te d 31 .0 3. 20 22 26 3 19. 107 / A gr./ 20 23 201 7- 18 Ma n oj Aga rwa l P CIT- 1 P CIT , A g ra- 1’ s c as e No . P CIT -1 / Ag ra / ITO ( OSD) / 26 3/ Ma n oj / 202 1 - 22 Da te d 31 .0 3. 20 22 26 3 20. 153 / A gr./ 20 23 201 7- 18 Ma n jh i B ric k Field P CIT- 1 P CIT , A g ra- 1’ s c as e No . P CIT -1 / A gra/ IT O( OSD) / 263/ M an j hi/ 2 02 1 - 22 Da te d 31 .0 3. 20 22 26 3 21. 139 / A gr./ 20 24 201 7- 18 As ha Gu pt a P CIT- 1 P CIT , A g ra- 1’ s c as e No . P CIT -1 / A gra/ IT O( OSD) / 263/ As ha / 20 2 1- 2 2 Da te d 31 .0 3. 20 22 26 3 ITA No. 33/Agr./2022 & 20 others 7 2. Heard all the assessees and department through their respective learned representatives. Case files perused. 3. It emerges during the course of hearing in all these cases that although they are filed by different assessees against the respective orders of the learned PCIT’s or CIT’s; as the case may be, we find a clinching common/identical fact herein as none of the impugned order(s) has given any categorical finding as to how and in what manner, the regular assessment(s) in question are erroneous ones or they do cause prejudice to the interest of the Revenue, simultaneously. 4. Faced with this situation, the Revenue’s very able learned CIT-DR vehemently argues that once these assessees had been issued the corresponding section 263 show-cause notices which remained non-complied at their end, even if there is no specific finding in the impugned orders, the same deserve to be upheld for want of rebuttal by the appellant side before the revisional authority(es). 5. We have given out thoughtful consideration to the vehement rival pleadings. We find no reason to sustain any of the impugned revision direction forming subject matter of our adjudication in all these cases. This is for the precise reason that apart from reproducing the corresponding show-cause notices which went un-responded by the most of the assessees, ITA No. 33/Agr./2022 & 20 others 8 there is not even a single instance wherein the learned revisional authority has arrived at any categorical finding on merits after having discussed the relevant error as well as prejudice caused to the interest of the Revenue. Needless to say, the law on exercise of the impugned revision jurisdiction stand very well settled since long in light of Malabar Industries Ltd. vs. CIT (2000) 243 ITR 83(SC) that before the same is invoked, the assessment has to be simultaneously erroneous as well as causing prejudice to the interest of the Revenue. Meaning thereby that till the time such a conclusion is not arrived at by the learned revision authority, an assessment could not be held as liable to be revised merely because of the fact that the corresponding show-cause notice(s) issued to the taxpayer have gone un-responded. We are further informed that case law M. L. Chains Vs. PCIT (2024) 461 ITR 457 (All.) has already decided the very issue involving a similar revision direction, as not sustainable, in para 20 thereof. We thus accept the assessees identical submissions in all these cases to this extent and reverse the learned PCIT’s section 263 corresponding identical revision directions. Ordered accordingly. All necessary computation shall follow. 6. All other pleadings on merit amongst the parties stand rendered academic in above terms. ITA No. 33/Agr./2022 & 20 others 9 7. To sum up, all these twenty one assessees’ as many appeals ITA Nos. 39 & 46/Agr./2021, ITA Nos. 26, 39, 40, 47, 49, 50, 66, 67, 81, 83, 84, 85, 97, 98 & 107/Agr./2022, ITA Nos. 33, 107 & 153/Agr./2023 and ITA Nos. 139/Agr./2024 are allowed in above terms. A copy of this common order be placed in the respective case files. Order Pronounced in the Open Court on 21/02/2025. Sd/- Sd/- (Manoj Kumar Aggarwal) (Satbeer Singh Godara) Accountant Member Judicial Member Dated: 21/02/2025 *Subodh Kumar, Sr. PS* Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR "
Other Referred Cases
Malabar Industries Ltd. vs. CIT (2000) 243 ITR 83(SC), M. L. Chains Vs. PCIT (2024) 461 ITR 457 (All.)
Laws Referred To
Income Tax Act
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