JSIW INFRASTRUCTURE PVT. LTD.,AHMEDABAD V. THE PCIT-1, AHMEDABAD

ITA 621/AHD/2025

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The case involves JSIW Infrastructure Pvt. Ltd., the appellant, contesting an order by the Principal Commissioner of Income Tax-1, Ahmedabad, concerning the Assessment Year 2020-21. The PCIT had initiated proceedings under section 263 of the Income Tax Act, claiming that the Assessing Officer (AO) had not properly inquired into the allowability of certain expenses, including interest on income tax. The tribunal examined the records and found that the AO had indeed made sufficient inquiries and allowed the deductions after scrutiny, contrary to the PCIT's claims. The tribunal's decision to quash the PCIT's order was based on the factual inaccuracies in the PCIT's observations.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 717718 (ITAT-AHMEDABAD)
• Duration Of Justice: 4 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-08-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2020-2021
• Appeal Filed On: 26-03-2025
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R P RASTOGI
• Assessee Lawyers: PARIN SHAH
• Keywords: Set aside
• Section: 263; 37

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, AHMEDABAD BEFORE DR. B.R.R. KUMAR, VICE-PRESIDENT SHRI SIDDHARTHA NAUTIYAL, JUDICIAL MEMBER ITA No.621/Ahd/2025 (Assessment Year: 2020-21) JSIW Infrastructure Pvt. Ltd., 4, Asra Mitra Estate, B/H Jupiter Mill, Dudheswar Road, Ahmedabad-380004. [PAN :AABCJ8501 F] Vs. The Principal Commissioner of Income Tax-1, Ahmedabad. (Appellant) .. (Respondent) Appellant by : Shri Parin Shah, AR Respondent by: Shri RP Rastogi, CIT. DR Date of Hearing 13.08.2025 Date of Pronouncement 14.08.2025 O R D E R PER DR. B.R.R. KUMAR, VICE-PRESIDENT:- This appeal is filed by the Assessee against the appellate order dated 05.03.2025 passed by the Principal Commissioner of Income Tax, Ahmedabad, relating to the Assessment Year 2020-21. 2. The assessee has raised the following grounds of appeal: 1. The order passed by PCIT is bad in law and required to be quashed. 2. Ld. PCIT erred in law and on facts in initiating proceedings u/s.263 of the Act ignoring fact that issue raised in show cause notice u/s.263 of the Act has been properly verified by AO during scrutiny assessment proceedings. Printed from counselvise.com ITA No.621/Ahd/2025 JSIW Infrastructure Pvt. Ltd Vs. PCIT Asst. Year 2020-21 - 2– 3. The Ld. PCIT erred in law and on facts in proceedings with revision jurisdiction ignoring fact that order passed by AO is neither erroneous not prejudicial to the interest of revenue. 4. The PCIT erred in law and on facts in setting aside the order by observing that proper inquiry for claim of allowability of expenses was not made ignoring fact that the case selected for scrutiny to verify the allowability and after sufficient inquiry AO allowed deduction. 5. Ld. PCIT erred in observing that AO passed an order without making any enquiry ignoring notices u/s.142(1) of the Act and it’s replied by appellant. 3. We have examined the records before us and heard the arguments of both parties. The relevant pages required for adjudication of these issues are as follows:  Page No. 404 of the paper book(Form No.3CD), Column 21, titled “Expenditure by way of penalty or fine for violation of any law for the time being in force”, reflects particulars described as “Interest on Income Tax” amounting to Rs.99,37,893/-.  Page No. 166 of the ITR filed by the assessee (vide Acknowledgment No. 252857101120221) for Assessment Year 2020-21, Column No. 15 “Amounts debited to the profit and loss account, to the extent disallowable under section 37”, reflects an amount of Rs.2,07,68,408/-.  Page No. 117 of the paper book, titled “Computation of Total Income”, shows disallowances under section 37 of Rs.99,37,893/- towards interest on income tax, along with other expenditures such as personal expenditure, corporate social responsibility, donation, and loss on sale of assets, amounting in total to Rs.2,07,68,408/-. Printed from counselvise.com ITA No.621/Ahd/2025 JSIW Infrastructure Pvt. Ltd Vs. PCIT Asst. Year 2020-21 - 3–  Page No. 87 of the paper book contains the detailed break-up of Rs.2,07,68,408/-, which includes the interest on income tax received by the assessee. 4. The Ld. PCIT set aside the order of the Assessing Officer on the grounds that the interest on income tax of Rs.99,37,893/- had not been disallowed by the assessee in its ITR. However, after hearing the arguments of both parties and perusing the paper book, we find this observation to be factually incorrect based on the record. Accordingly, the order passed under section 263 of the Act by the Ld. PCIT is hereby quashed. 5. In the result, the appeal filed by the assessee is allowed. The order is pronounced in the open Court on 14.08.2025. Sd/- Sd/- (SIDDHARTHA NAUTIYAL) (DR. B.R.R. KUMAR) JUDICIAL MEMBER VICE-PRESIDENT (True Copy) Ahmedabad; Dated 14.08.2025 MV आदेश की Ůितिलिप अŤेिषत/Copy of the Order forwarded to : 1. अपीलाथŎ / The Appellant 2. ŮȑथŎ / The Respondent. 3. संबंिधत आयकर आयुƅ / Concerned CIT 4. आयकर आयुƅ(अपील) / The CIT(A)- 5. िवभागीय Ůितिनिध, आयकर अपीलीय अिधकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाडŊ फाईल / Guard file. आदेशानुसार/ BY ORDER, True Copy सहायक पंजीकार (Dy./Asstt. Registrar) आयकर अपीलीय अिधकरण, अहमदाबाद / ITAT, Ahmedabad Printed from counselvise.com "