Saurav karmakar v. PCIT DELHI -20

Judgement held

A partial and adhoc addition that leaves parts of unexplained deposits untaxed is an “erroneous and prejudicial” Order under section 263 of the act.

Advice to assessee:- Always reply to every notice under section 263, wanting to file evidence later does not make section 263 order is bad.it only shows verification is needed.

Brief history

AO REOPENED CASE FOR #CASHDEPOSITED UNDER SECTION 147 OF THE ACT.AO ASSESSED INCOME BY ADDING 70% OF CASH DEPOSITED WHICH WAS RS.27.02 LAKH OUT OF RS 38.60 LAKH.BUT PCIT REOPENED THE MATTER UNDER SECTION 263 OF THE INCOME TAX ACT AND MADE ADDITION OF Differences AMOUNT UNDER SECTION 263 RS 11.58 WHICH INCOME WAS LEFT UNTAXED. ASSESSEE NEVER REPLIED TO THE 263 NOTICE AND BEFORE ITAT ONLY SOUGHT TO FILE ADDITIONAL EVIDNCE , FINALLY ITAT UPHELD SECTION 263 ORDER AND 810 DAYS DELAY WAS CONDONED.

Reproduced from the order of the Income Tax Appellate Tribunal, Delhi Bench, in 3636/del/2024, pronounced 19 Aug 2026. Source: itat.gov.in. The notes above are an editorial summary; read the full order before relying on it. Order No. Sh. Satvir singh Godara JM and Sh. Navee.