Section 263 Cannot Be Invoked Solely for Lack of DVO Report: Karnataka HC

PCIT Vs Harisha (Karnataka High Court) The Karnataka High Court has dismissed an appeal by the Principal Commissioner of Income Tax (PCIT) against an Income Tax Appellate Tribunal (ITAT) order. The ITAT had earlier granted relief to the assessee, Harisha. The Revenue’s appeal challenged the ITAT’s decision to set aside the PCIT’s order under Section 263 of the Income Tax Act, 1961. Section 263 allows the PCIT to revise assessment orders if they are deemed erroneous and prejudicial to the interests of the revenue. The Revenue’s primary contention was that the assessment ...