section 263

Does Revisionary power u/s 263 of Income Tax Act 1961 really confer power to re-review?

Income 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....

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Section 263 Revision of orders prejudicial to revenue – Amendment wef 01.06.2015

Income Tax - Commissioner of Income Tax (CIT) has the power u/s 263 & 264 of the Income Tax Act, 1961, to consider an order passed by Assessing officer (AO). U/S 264, CIT can consider the order passed by AO, only when an appeal is made by assessee to him within stipulated time frame. However, u/s 263 CIT possesses the power to consider the order passe...

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Sec. 263 Order which are erroneous and prejudicial to interests of revenue

Income Tax - It is proposed to provide that an order passed by the Assessing Officer shall be deemed to be erroneous in so far as it is prejudicial to the interests of the revenue, if, in the opinion of the Principal Commissioner or Commissioner,— 1. the order is passed without making inquiries or verification which, should have been made; 2. ...

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No Reopening of Assessment to be made on Audit Objections: Committee Recommends

Income 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...

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CIT cannot invoke Jurisdiction U/s. 263 if matter already been heard by CIT (A)

Shri Ramakant Sharma Vs. Pr. Commissioner of Income-tax (ITAT Jaipur) - Where the CIT(A) was already ceased of the matter wherein the matter has been contested before him by the AO, the ld. Pr. CIT does not have the jurisdiction to exercise his powers u/s 263 of the Act on the same matter as per the explicit provisions contained in clause (c) to explanation 1 to section...

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Writ Petition not Maintainable against a Show-Cause Notice: HC

Piyara Lal Vs. Principle Commissioner of Income Tax and another (Punjab and Haryana High Court) - In our considered view, no writ petition is maintainable against a show-cause notice. The petitioner, if so advised, may submit objections against the show-cause notice and if any adverse order is passed, he shall have his remedy against the same in accordance with law....

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CIT can revise assessment order u/s 263 if AO did not make any proper inquiry

Deniel Merchants P. Ltd. Vs. ITO (Supreme Court of India) - Bogus share capital: Law laid down in Subhlakshmi Vanijya Pvt. Ltd vs. CIT 155 ITD 171 (Kol), Rajmandir Estates 386 ITR 162 (Cal) etc that the CIT is entitled to revise the assessment order u/s 263 on the ground that the AO did not make any proper inquiry while accepting the explanation of the asses...

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Section 263: Revisional order becomes legally fragile on failure to provide opportunity of hearing to assessee

Bses Rajdhani Power Ltd. Vs. Principal Commissioner Of Income Tax (Delhi High Court) - What is contemplated by Section 263, is an opportunity of hearing to be afforded to the assessee. Failure to give such an opportunity would render the revisional order legally fragile not on the ground of lack of jurisdiction but on the ground of violation of principles of natural justice....

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CIT cannot treat AO’s order as erroneous and prejudicial to interest of revenue without conducting an enquiry and recording a finding

M/s Amira Pure Foods Pvt. Ltd. Vs. The Pr. C.I.T (ITAT Delhi) - For the purposes of exercising jurisdiction under Section 263 of the Act, the conclusion that the order of the AO is erroneous and prejudicial to the interests of Revenue had to be preceded by some minimal inquiry. In fact, if the ld. PCIT is of the view that the AO did not undertake any inquiry, it...

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section 263’s Popular Posts

Recent Posts in "section 263"

CIT cannot invoke Jurisdiction U/s. 263 if matter already been heard by CIT (A)

Shri Ramakant Sharma Vs. Pr. Commissioner of Income-tax (ITAT Jaipur)

Where the CIT(A) was already ceased of the matter wherein the matter has been contested before him by the AO, the ld. Pr. CIT does not have the jurisdiction to exercise his powers u/s 263 of the Act on the same matter as per the explicit provisions contained in clause (c) to explanation 1 to section 263 of the Act....

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Writ Petition not Maintainable against a Show-Cause Notice: HC

Piyara Lal Vs. Principle Commissioner of Income Tax and another (Punjab and Haryana High Court)

In our considered view, no writ petition is maintainable against a show-cause notice. The petitioner, if so advised, may submit objections against the show-cause notice and if any adverse order is passed, he shall have his remedy against the same in accordance with law....

Read More

CIT can revise assessment order u/s 263 if AO did not make any proper inquiry

Deniel Merchants P. Ltd. Vs. ITO (Supreme Court of India)

Bogus share capital: Law laid down in Subhlakshmi Vanijya Pvt. Ltd vs. CIT 155 ITD 171 (Kol), Rajmandir Estates 386 ITR 162 (Cal) etc that the CIT is entitled to revise the assessment order u/s 263 on the ground that the AO did not make any proper inquiry while accepting the explanation of the assessee insofar as receipt of share applicat...

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Section 263: Revisional order becomes legally fragile on failure to provide opportunity of hearing to assessee

Bses Rajdhani Power Ltd. Vs. Principal Commissioner Of Income Tax (Delhi High Court)

What is contemplated by Section 263, is an opportunity of hearing to be afforded to the assessee. Failure to give such an opportunity would render the revisional order legally fragile not on the ground of lack of jurisdiction but on the ground of violation of principles of natural justice....

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CIT cannot treat AO’s order as erroneous and prejudicial to interest of revenue without conducting an enquiry and recording a finding

M/s Amira Pure Foods Pvt. Ltd. Vs. The Pr. C.I.T (ITAT Delhi)

For the purposes of exercising jurisdiction under Section 263 of the Act, the conclusion that the order of the AO is erroneous and prejudicial to the interests of Revenue had to be preceded by some minimal inquiry. In fact, if the ld. PCIT is of the view that the AO did not undertake any inquiry, it becomes incumbent on the LD. PCIT to co...

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Surplus left after claiming deduction U/s. 54F can be set off against LTCG in succeeding year

S. Baljit Singh Ryait Vs. ITO (ITAT Chandigarh)

A bare reading of sections 54 and 54F of the Act nowhere states that the surplus remaining after claiming deduction under section 54/54F on account of construction of house property undertaken in a year, would not be allowed set off against long-term capital gain earned in the succeeding year. ...

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Order of AO not become erroneous merely because PCIT feels that further inquiry should have been made

M/s Amira Enterprises Ltd. Vs. The Pr. C.I.T. (ITAT Delhi)

M/s Amira Enterprises Ltd. Vs. The Pr. C.I.T. (ITAT Delhi) The assessee had filed various replies to the ld. PCIT in response to notice u/s of the Act 263 of the Act stating that all the issues raised by the PCIT have been examined by the AO during the course of assessment. The PCIT has […]...

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S. 263 Non initiation of penalty proceedings during assessment renders it erroneous

Jyoti Ranjan Roy Vs. Pr. CIT-17 (ITAT Kolkata)

Tribunal was not justified in holding that the failure to initiate penalty proceedings in the course of the assessment did not render the assessment order erroneous and prejudicial to the interest of the revenue. The Commissioner had the jurisdiction to revise such an order....

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Section 263: Failure to issue notice on any particular issue

Bses Rajdhani Power Ltd. Vs. Principal CIT (Delhi High Court)

Failure to issue notice on any particular issue does not vitiate the exercise of power under Section 263 as long as the assessee is heard and given opportunity...

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CIT can consider all aspects which were subject matter of AO’s order, if in his opinion, they are erroneous

Bses Rajdhani Power Ltd. Vs. Principal CIT (Delhi High Court)

Lack of opportunity at the revisional stage under Section 263 does not vitiate the entire order, or the proceedings; rather it is a curable defect. Court is of the opinion that the ruling in Commissioner of Income tax v Amitabh Bacchan 2016 SCC Online SC 484 is decisive; it upholds the power of the Commissioner to consider all aspects whi...

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