Case Law Details
Advocate Akhilesh Kumar Sah
BEFORE PASSING AN ORDER UNDER SECTION 263 PRINCIPAL COMMISSIONER OR COMMISSIONER OF INCOME TAX HAS TO MAKE HIS/HER OWN ENQUIRY
Subject to its Explanations, section 263(1) of the Income Tax Act, 1961 (‘Act’)states that the Principal Commissioner or Commissioner may call for and examine the record of any proceeding under this Act, and if he considers that any order passed therein by the Assessing Officer is erroneous in so far as it is prejudicial to the interests of the revenue, he may, after giving the assessee an opportunity of being heard and after making or causing to be made such inquiry as he deems necessary, pass such order thereon as the circumstances of the case justify, including an order enhancing or modifying the assessment, or cancelling the assessment and directing a fresh assessment.
More recently, in PCIT, New Delhi vs. Delhi Airport Metro Express Pvt. Ltd. [ITA No. 705/2017, decided on 05.09.2017], the short question raised by the Revenue was whether the ITAT was justified in setting aside the order of the Principal Commissioner of Income Tax (‘PCIT’) passed under Section 263 of the Act in respect of AY 2011-12 setting aside the original assessment order dated 31.122013 passed by the Assessing Officer (‘AO’) under Section 143 (3) of the Act.
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