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Income Tax - Understanding the scope of section 263 – Power of Commissioner to revise an assessment order being erroneous and prejudicial to the interest of the Revenue The power of appeal and revision is contained in Chapter XX of the Income Tax Act, 1961 (“the Act”) which includes section 263 that confers suo motu power of revision […]...
Read MoreIncome Tax - Understanding of revisionary powers of the Principal Commissioner or Commissioner to revise any assessment under section 263 which is ‘erroneous and prejudicial to the interests of the revenue’. Section 263 of the Income-tax Act, 1961 (herein after referred to as “the Act”) confers wide powers on the Principal Commissioner...
Read MoreIncome Tax - Revision under section 263 by the Principal Commissioner or Commissioner against void-ab-initio order or against a non-existent entity If an order is passed by the Assessing Officer against a non-existent entity, e.g. against an Amalgamating Company or against a Dissolved Firm, such an order is void-ab-initio and no revision can be made...
Read MoreIncome Tax - Section 263 of the Income-tax Act, 1961 (‘the Act’) provides revisional power to Principal Commissioner (‘Pr. CIT’) or Commissioner (‘CIT’) if he is of the opinion that an order passed by the AO is erroneous and prejudicial to the interests of the revenue....
Read MoreIncome Tax - Section 263 confers wide powers on Principle Commissioner of Income Tax/Commissioner of Income Tax (Pr.CIT/CIT) to revise any assessment which is erroneous and prejudicial to interests of revenue....
Read MoreIncome Tax - One of the key sources of dispute is the existing arrangement for follow up on audit objections by Internal Audit Party and the Revenue Audit Party. In terms of the existing arrangement, the Assessing Officer is required to take corrective steps following audit objections. The corrective measures take the form of rectification or reassess...
Read MoreM/s. Charbhuja Marmo (India) Pvt. Ltd. Vs PCIT (ITAT Delhi) - M/s. Charbhuja Marmo (India) Pvt. Ltd. Vs PCIT (ITAT Delhi) Invalid Reassessment Proceedings can not be Revised Under Section 263 by PCIT It is well settled Law that since re-assessment proceedings are invalid and bad in law, therefore, such proceedings could not be revised under section 263 of the ...
Read MoreM/s SRL Diagnostics Pvt. Ltd. Vs PCIT (ITAT Mumbai) - M/s SRL Diagnostics Pvt. Ltd. Vs PCIT (ITAT Mumbai) Mere finding the assessment order is erroneous does not give power to Ld. PCIT to annul the assessment order. It is duty imposed by the provision of section 263 that Ld. PCIT has to determine and satisfy both the conditions that the order passed by...
Read MoreSmt. Bhavna B. Kothari Vs ITO (ITAT Bangalore) - Merely because the issue was not elaborately discussed in the quantum assessment could not be a ground to invoke revisional jurisdiction u/s 263 particularly when the details called for by AO were submitted and placed on record....
Read MoreNitson & Amitsu Pvt. Ltd Vs ACIT (ITAT Kolkata) - Mere suspicion of likely escapement of income was not a ground for revision by invoking powers u/s 263 of the Act. Such an order was bad in law....
Read MoreSir Ratan Tata Trust Vs DCIT (ITAT Mumbai) - Sir Ratan Tata Trust Vs DCIT (ITAT Mumbai) Conclusion: Commissioner was clearly in error in invoking powers under section 263 on the ground that the Assessing Officer failed to examine the investments of the trust complying with the provisions of Section 11(5) and Section 13(1)(d) as how the trust...
Read MoreM/s. Charbhuja Marmo (India) Pvt. Ltd. Vs PCIT (ITAT Delhi) -
M/s SRL Diagnostics Pvt. Ltd. Vs PCIT (ITAT Mumbai) -
Smt. Bhavna B. Kothari Vs ITO (ITAT Bangalore) -
Nitson & Amitsu Pvt. Ltd Vs ACIT (ITAT Kolkata) -
Sir Ratan Tata Trust Vs DCIT (ITAT Mumbai) -
Nilesh Ajit Kumar Jain Vs ITO (ITAT Mumbai) -
Storewell Construction & Engineers Vs PCIT (ITAT Pune) -
Deccan Paper Mills Co. Ltd. Vs CIT (ITAT Pune) -
