Lack of Inquiry & Non-Application of Mind Validates Section 263 Revision: MP HC

Nagal Garment Industries Pvt. Ltd. Vs CIT (Madhya Pradesh High Court) Madhya Pradesh High Court addressed an appeal by Nagal Garment Industries Pvt. Ltd. under Section 260-A of the Income Tax Act, 1961, challenging the Income Tax Appellate Tribunal’s (ITAT) decision upholding the Commissioner of Income Tax’s (CIT) invocation of Section 263. The dispute arose from the assessment order for the year 2010-11, which the CIT revised on the grounds that the Assessing Officer (AO) failed to conduct a proper enquiry, making the order both erroneous and prejudicial to the interest of revenue. Despit...