Mere inadequate enquiry alone not justify Commissioner’s revisional jurisdiction

CIT Vs Chemsworth Pvt. Ltd. (Karnataka High Court) The Karnataka High Court recently ruled on the case of CIT Vs Chemsworth Pvt. Ltd., focusing on the applicability of Section 263 of the Income Tax Act, 1961. The case revolves around the disallowance of expenses under Section 14A, which pertains to expenditure incurred for earning exempt income. This judgment addresses the nuances of the Commissioner’s revisional powers and the adequacy of inquiries conducted by the Assessing Officer. The appeal was filed by the revenue under Section 260A of the Income Tax Act, 1961, and pertains to the ...