Case Law Details
Prestige Marketing Division Vs PCIT (Kerala High Court)
The Kerala High Court, in its recent judgment, addressed a crucial matter involving the Prestige Marketing Division and the Principal Commissioner of Income Tax (PCIT). The court examined the PCIT’s authority to initiate revision proceedings, specifically focusing on correcting the applied rate of tax in the assessment order.
Detailed Analysis:
The petitioner, challenging the judgment of the learned Single Judge, raised concerns regarding the PCIT’s exercise of revision power under Section 263 of the Income Tax Act during the pendency of an appeal before the First Appellate Authority. The central question revolved around whether the PCIT could intervene in an issue already under consideration by the Appellate Authority.
The contention of the petitioner was rooted in the belief that the Revisional Authority’s actions were unwarranted, given the pending appeal. However, the court, guided by the arguments presented by the Income Tax Department’s Standing Counsel, found a distinction between the issues. The learned Single Judge determined that the matter being revised was not identical to the one contested by the appellant in the ongoing appeal.
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