section 263

Section 263- Power of CIT to revise an assessment order being erroneous & prejudicial to interest of Revenue

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 […]...

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Understanding of revisionary powers of PCIT- Section 263

Income 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...

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Section 263 revision against void-ab-initio order or against a non-existent entity

Income 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...

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Revision by Commissioner – Section 263 -Income Tax Act 1961

Income 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....

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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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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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No Section 263 Revision If Assessment Orders neither Erroneous nor Prejudicial To Revenue Interest

Kamal Kishore Mukati Vs PCIT (ITAT Indore) - Kamal Kishore Mukati Vs PCIT (ITAT Indore) The facts in brief are that the assessee entered into an agreement in March 2006 for sale of agricultural land used for agricultural purpose. He received sale consideration in parts through banking channels. Sale deed was finally registered between March 20...

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Revision by CIT Held Invalid Where Interdiction of Assessment Order In Substitution of View Taken By AO Is Not Permissible Under Section 263

PCIT Vs Brahma Centre Development Pvt. Ltd. (Delhi High Court) - PCIT Vs Brahma Centre Development Pvt. Ltd. (Delhi High Court) Revision by CIT Held Invalid Where Interdiction of Assessment Order In Substitution of View Taken By AO Is Not Permissible Under Section 263 To answer this issue, one would have to bear in mind, the following aspects. i. Was there an enq...

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Revision order by CIT invalid if AO taken a possible view that transactions were genuine

Hill Queen Investment (P) Ltd. Vs PCIT (ITAT Kolkata) - Hill Queen Investment (P) Ltd. Vs PCIT (ITAT Kolkata) In this case issue is whether the ld. Pr. CIT is correct in invoking his powers u/s 263 of the Act. In our considered view, the Assessing Officer has called for and verified all the details and documents in connection to the purchase and sale of ...

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CIT cannot revise assessment order passed by AO without assigning any reason

CIT Vs Y.V. Subramaniam (Madras High Court) - CIT Vs Y.V. Subramaniam (Madras High Court) The Tribunal, while allowing the assessee’s appeal, observed that the assessment order was passed after making full verification and the order of the CIT is based on no reason and he has simply given an abrupt finding that the assessment order is err...

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No section 263 revision by PCIT based on borrowed satisfaction

Grasim Industries Ltd. Vs PCIT (ITAT Mumbai) - Since the revision proceedings u/s 263 had been apparently triggered only based on borrowed satisfaction i.e Audit Objection and not based on independent application of mind by PCIT therefore, the revision order passed by PCIT u/s 263 was hereby directed to be quashed....

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section 263’s Popular Posts

Recent Posts in "section 263"

No Section 263 Revision If Assessment Orders neither Erroneous nor Prejudicial To Revenue Interest

Kamal Kishore Mukati Vs PCIT (ITAT Indore)

Kamal Kishore Mukati Vs PCIT (ITAT Indore) The facts in brief are that the assessee entered into an agreement in March 2006 for sale of agricultural land used for agricultural purpose. He received sale consideration in parts through banking channels. Sale deed was finally registered between March 2006 and April 2008. Before registering th...

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Revision by CIT Held Invalid Where Interdiction of Assessment Order In Substitution of View Taken By AO Is Not Permissible Under Section 263

PCIT Vs Brahma Centre Development Pvt. Ltd. (Delhi High Court)

PCIT Vs Brahma Centre Development Pvt. Ltd. (Delhi High Court) Revision by CIT Held Invalid Where Interdiction of Assessment Order In Substitution of View Taken By AO Is Not Permissible Under Section 263 To answer this issue, one would have to bear in mind, the following aspects. i. Was there an enquiry carried out by […]...

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Revision order by CIT invalid if AO taken a possible view that transactions were genuine

Hill Queen Investment (P) Ltd. Vs PCIT (ITAT Kolkata)

Hill Queen Investment (P) Ltd. Vs PCIT (ITAT Kolkata) In this case issue is whether the ld. Pr. CIT is correct in invoking his powers u/s 263 of the Act. In our considered view, the Assessing Officer has called for and verified all the details and documents in connection to the purchase and sale of […]...

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CIT cannot revise assessment order passed by AO without assigning any reason

CIT Vs Y.V. Subramaniam (Madras High Court)

CIT Vs Y.V. Subramaniam (Madras High Court) The Tribunal, while allowing the assessee’s appeal, observed that the assessment order was passed after making full verification and the order of the CIT is based on no reason and he has simply given an abrupt finding that the assessment order is erroneous insofar as it is prejudicial [&he...

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No section 263 revision by PCIT based on borrowed satisfaction

Grasim Industries Ltd. Vs PCIT (ITAT Mumbai)

Since the revision proceedings u/s 263 had been apparently triggered only based on borrowed satisfaction i.e Audit Objection and not based on independent application of mind by PCIT therefore, the revision order passed by PCIT u/s 263 was hereby directed to be quashed....

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Section 263 Jurisdiction cannot be invoked on mere abrupt finding

CIT Vs Y. V. Subramaniam (Madras High Court)

CIT Vs Y. V. Subramaniam (Madras High Court)  On a perusal of the order passed by the Tribunal, it is clear that the Tribunal has categorically held that the order passed by CIT is based on no reason and he has simply given an abrupt finding that the assessment order is erroneous. Further, the Tribunal, […]...

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AO cannot revisit his conclusions at the stage of passing the final order

Galaxy Surfactants Limited Vs ACIT (ITAT Mumbai)

Galaxy Surfactants Limited Vs ACIT (ITAT Mumbai) Once an Assessing Officer prepares a draft assessment order, that is the end of his domain of powers so far as framing of assessment is concerned- unless of course there are any directions from the Dispute Resolution Panel which are required to be implemented by the Assessing Officer. [&hel...

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Section 263 need not be invoked for computational error: ITAT

Manoj Singhal Vs PCIT (ITAT Delhi)

Manoj Singhal Vs PCIT (ITAT Delhi) On going through the details, we find that the deduction claimed u/s 54F was Rs.6,12,10,100/- whereas the deduction eligible was Rs.6,11,19,500/-. Thus, there is a computational difference of Rs.90,600/- in the claim of deduction u/s 54F which could have been rectified u/s. 154. The provisions of section...

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Tax Neutral Section 263 order passed by CIT is liable to be Quashed

Pooja Marketing Vs. Pr. CIT (ITAT Mumbai)

Pooja Marketing Vs. Pr. CIT (ITAT Mumbai) In the present case before us, the assessee had offered its entire income including income by way of winnings from lotteries on unsold lottery tickets, as income chargeable under the head ―Profits and gains of business or profession“. However, the ld PCIT had sought to treat the income [&h...

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CIT by exercising revisional jurisdiction cannot expand AO’s limited scrutiny

Taj Paul Bhardwaj Vs PCIT (ITAT Chandigarh)

Since AO passed the assessment order and accepted the return filed by assessee after examining the issue regarding increase in capital account as assessee had credited his capital account with agricultural income and the capital gain from sale of flats and had reflected that same in its capital account, therefore, CIT had exceeded jurisdi...

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