Calcutta HC lists matter on Substantial Questions of Law including Revisionary Power u/s 263, Improper Calculation and Incomplete Explanation

The High Court at Calcutta listed a matter concerning substantial questions of law including revisionary power under Section 263 of the Income Tax Act, 1961, improper calculation and incomplete explanation.

After the delay of 179 days in filing the appeal was condoned due to satisfactory explanation, the HC took into consideration the following substantial questions of law presented by the counsel appearing on behalf of the appellant.

Firstly, the issue whether the quashing of order dated 31.03.2024 under Section 263 was erroneous and contrary to the provisions of Section 68. It was in contention whether the ITAT had failed to charge the entire amount of unexplained unsecured loans availed to tax, considering that the assessee failed to provide complete details of such loans.

Secondly, another issue that needs to be considered is whether the Principal Commissioner of Income Tax (Pr. CIT) has rightly invoked Section 68 for taxing the entire sum credited in the books of accounts for which the assessee offers no explanation or the explanation offered is not satisfactory.

Thirdly, whether ITAT has misinterpreted Section 263 and not recognized the deficiency in the investigation conducted by the Assessing Officer (AO) for which the revisionary power was rightly exercised.

The Calcutta High Court, via Justices Rajarishi Bharadwaj and Uday Kumar, directed the appellant to file the requisite number of informal paper books prepared out of Court including all relevant materials used in arguments within ten weeks of notice and the matter to be listed within twelve weeks from the date of the order.

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