Section 263 Revision Fails Due to Proper Inquiry by Assessing Officer: SC

PCIT Vs Aculife Healthcare Pvt Ltd (Supreme Court of India) The dispute arose from revision proceedings initiated under Section 263 of the Income Tax Act, 1961, against an assessment order allowing depreciation on goodwill following a demerger. The assessee had filed its return for Assessment Year 2015–16 declaring a substantial loss, which was accepted by the Assessing Officer under Section 143(3) after complete scrutiny. The Principal Commissioner of Income Tax later invoked Section 263, holding that the assessment was erroneous and prejudicial to the interests of the Revenue. According to...