Proceeding u/s 263 can't be Initiated on Account of Income received from Fly Ash and Cenosphere: ITAT set aside Order of PCIT while granting relief to NTPC [Read Order]

The Delhi bench of the Income Tax Appellate Tribunal (ITAT) set aside the order of the Principal Commissioner of Income Tax (PCIT) while granting relief to NTPC and held that the proceeding under Section 263 of the Income Tax Act, 1961 cannot be initiated on account of income received from the fly ash and cenosphere.

The assessee filed its return declaring total income at NIL and current year loss to be carried forward of Rs.52,82,33,949/-. The case was selected for complete scrutiny through Computer-Assisted Scrutiny Selection (CASS). The assessment was completed under Section 143(3) of the Income Tax Act.

The PCIT initiated proceedings under Section 263 of the Income Tax Act and considered the assessment order passed under Section 143(3) of the Income Tax Act and held that the same is erroneous so far as it is prejudicial to the interest of the Revenue owing to the failure of the Assessing Officer to at Rs.88,26,37,126/- on account of the income from the sale of fly ash and cenosphere.

The Authorized Representative submitted that a similar order under Section 263 of the Income Tax  Act has been passed by the PCIT and the Co-ordinate Bench of the Tribunal set aside the order of the PCIT and decided the issue in favour of the assessee, therefore, sought for following the principle of law consistency and also prayed for allowing the appeal.

The Two-member bench comprising of B.R.R. Kumar (Accountant member) and Yogesh Kumar U.S. (Judicial member) held that no addition was called for on account of income from fly ash and cenosphere. Accordingly, the impugned order passed under Section 263 of the Income Tax Act by the PCIT was hereby set aside. And the appeal of the assessee was allowed.

To Read the full text of the Order CLICK HERE

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