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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Revisional order U/s 263 sustained in case of Anil Kapoor‘s Production Company

Ms Anil Kapoor Film Co. Pvt. Ltd. Vs Pr. CIT (ITAT Mumbai) - evisional order passed by the Principal Commissioner in case of Anil Kapoor Film Co. Pvt. Ltd was upheld as AO had not made enquiries/verification, to satisfy himself with respect to creditworthiness of the lender and genuineness of the transactions before framing the assessment....

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Once basis of addition is not sustainable than direction for further enquiry U/s. 263 not sustainable

Mukand Sumi Metal Processing Limited Vs Principal CIT (ITAT Mumbai) - Mukand Sumi Metal Processing Limited Vs PCIT (ITAT Mumbai) Provisions of section 56(2)(viib) invoked in the notice u/s. 263 by the ld. CIT is not applicable to the assessee company. As the assessee company was falling under section 2(18) of the Income Tax Act, 1961 being a company in which public ar...

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Notice for Revision U/s. 263: Limitation period to begin from date of assessment or date of re-assessment?

Indira Industries Vs. Pr. CIT (Madras High Court) - When a notice under section 263 dealt with several issues, which were not subject-matter of re-assessment proceedings, then, two years period contemplated under section 263(2) would begin to run from date of original assessment and not from date of re-assessment, CIT issued notice under section 263...

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CIT cannot pass a revision order unless assessee is given opportunity of being heard

Ambuja Cements Limited Vs CIT (ITAT Mumbai) - Ambuja Cements Limited Vs CIT (ITAT Mumbai) Section 263(1) of the Act obligates the Commissioner to give the assessee an opportunity of being heard before passing of his order. No doubt the Commissioner is not disentitled to consider a point which is not stated in the notice so issued. However, the ...

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Section 263 order without considering reply of Assessee is invalid

M/s. Great Heights Infratech Pvt. Vs Pr. CIT (ITAT Delhi) - Gauhati High Court in the case of Leela Choudhary vs. CIT 289 ITR 226 held that Order passed under section 263 of the I.T. Act without considering the reply of the assessee would not be valid....

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CIT cannot exercise Revisionary power u/s 263 merely because he has different opinion on the matter

The assessee has filed this appeal disputing the order of Pr. Commissioner of Income Tax-15, Kolkata passed u/s 263 of the Income Tax Act, 1961 (hereinafter referred to as the Act) dated 22.03.2017 by which the Ld. Pr. CIT set aside the assessment order dated 02.03.2015 passed u/s 143(3) of the Act ...

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Recent Posts in "section 263"

Revisional order U/s 263 sustained in case of Anil Kapoor‘s Production Company

Ms Anil Kapoor Film Co. Pvt. Ltd. Vs Pr. CIT (ITAT Mumbai)

evisional order passed by the Principal Commissioner in case of Anil Kapoor Film Co. Pvt. Ltd was upheld as AO had not made enquiries/verification, to satisfy himself with respect to creditworthiness of the lender and genuineness of the transactions before framing the assessment....

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Once basis of addition is not sustainable than direction for further enquiry U/s. 263 not sustainable

Mukand Sumi Metal Processing Limited Vs Principal CIT (ITAT Mumbai)

Mukand Sumi Metal Processing Limited Vs PCIT (ITAT Mumbai) Provisions of section 56(2)(viib) invoked in the notice u/s. 263 by the ld. CIT is not applicable to the assessee company. As the assessee company was falling under section 2(18) of the Income Tax Act, 1961 being a company in which public are substantially interested. This [&helli...

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Notice for Revision U/s. 263: Limitation period to begin from date of assessment or date of re-assessment?

Indira Industries Vs. Pr. CIT (Madras High Court)

When a notice under section 263 dealt with several issues, which were not subject-matter of re-assessment proceedings, then, two years period contemplated under section 263(2) would begin to run from date of original assessment and not from date of re-assessment, CIT issued notice under section 263 from date of re-assessment, therefore, ...

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CIT cannot pass a revision order unless assessee is given opportunity of being heard

Ambuja Cements Limited Vs CIT (ITAT Mumbai)

Ambuja Cements Limited Vs CIT (ITAT Mumbai) Section 263(1) of the Act obligates the Commissioner to give the assessee an opportunity of being heard before passing of his order. No doubt the Commissioner is not disentitled to consider a point which is not stated in the notice so issued. However, the obligation to given an […]...

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Section 263 order without considering reply of Assessee is invalid

M/s. Great Heights Infratech Pvt. Vs Pr. CIT (ITAT Delhi)

Gauhati High Court in the case of Leela Choudhary vs. CIT 289 ITR 226 held that Order passed under section 263 of the I.T. Act without considering the reply of the assessee would not be valid....

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MTM loss is an actual and ascertained liability

M/s Himadri Chemicals & Industries Ltd. Vs Pr. CIT (ITAT Kolkata)

M/s Himadri Chemicals & Industries Ltd. Vs Pr. CIT (ITAT Kolkata) Ordinarily under the mercantile system of accounting, expenditure is deductible when the liability to settle the same is accrued, irrespective of whether it is ‘due’ or not. However, in the case of a contingent liability, there is no present existence to discharge t...

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S. 263 CIT must show that view taken by AO is wholly unsustainable in law

Torrent Pharmaceuticals Ltd Vs DCIT (ITAT Ahmedabad)

Torrent Pharmaceuticals Ltd Vs DCIT (ITAT Ahmedabad) Revisional Commissioner is expected show that the view taken by the AO is wholly unsustainable in law before embarking upon exercise of revisionary powers. The revisional powers cannot be exercised for directing a fuller inquiry to merely find out if the earlier view taken is erroneous...

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S.263 CIT cannot treat Loss as speculative which was treated as business by AO with due application of mind

ITT Shipping (P) Ltd. Vs Pr. CIT (ITAT Kolkata)

Where AO after making adequate enquiries and verification held that forward contract loss was allowable as normal business loss, CIT was not justified in treating the same as speculative one and the assessment order as erroneous and prejudicial to the interest of revenue....

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Revision U/s. 263 cannot be done if AO has taken Plausible view resulting in revenue loss

Agasthiya Granite (P) Ltd. Vs ACIT (Madras High Court)

If the view taken by the AO was a plausible view and if it results in loss of revenue, it could not be treated as prejudicial to the interests of the Revenue for the purpose of invoking the power under section 263....

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Section 263 Inadequate inquiry by AO, cannot be considered as lack of inquiry

Fusion Voice Solutions India (P) Ltd. Vs ITO (ITAT Visakhapatnam)

Inadequate inquiry by AO with respect to compliance of TDS under section 194H could not be equated with lack of inquiry, so as take the case for revision under section 263....

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