Case Law Details
CIT Vs Paville Projects Pvt. Ltd. (Supreme Court of India)
Supreme Court allows Revenue’s appeal quashing the Bombay High court order that had set aside CIT’s revisionary order passed under section 263 of Income Tax Act, 1961.
CIT in exercise of the powers u/s 263 and in exercise of the revisional jurisdiction, set aside the assessment order by specifically observing that the assessment order was erroneous as well as prejudicial to the interest of the Revenue. However, the High Court by the impugned judgment and order has set aside the order passed by the Commissioner by observing that the Commissioner wrongly invoked the powers u/s 263.
The decision of the SC in Malabar Industrial Co. Ltd. Vs. CIT [(2000) 2 SCC 718 : (2000) 243 ITR 83 (SC)] was extensively discussed.
The Apex Court observed that the High Court has committed a very serious error in setting aside the order passed by the CIT passed in exercise of powers u/s 263.
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