Case Law Details
Gerah Enterprises P. ltd. Vs PCIT (ITAT Mumbai)
Gerah Enterprises vs. PCIT (ITAT Mumbai): CBDT Circular No. 19/2019 and the Quashing of Section 263 Order
In the complex world of income tax assessments, disputes often arise between taxpayers and the tax authorities. One of the significant tools available to the tax department to rectify apparent errors in assessments is Section 263 of the Income Tax Act, 1961. This section empowers the Principal Commissioner of Income Tax (PCIT) to revise an order if it appears erroneous and prejudicial to the interests of the revenue. However, as with many legal provisions, the use of this section must be in accordance with established guidelines and principles.
This article delves into the case of Gerah Enterprises Pvt. Ltd. vs. PCIT (Income Tax Appellate Tribunal, Mumbai), where the taxpayer challenged the validity of a Section 263 order issued by the PCIT. The case offers essential insights into the application of Section 263 and the role of CBDT Circular No. 19/2019 in determining the fate of such orders.
Background of the Case
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