Law:

Section:

Section 263 of the Income-tax Act, 1961 - Revision - Of orders prejudicial to interest of revenue - Assessment year 2004-05 - For passing an order of remand after holding that order is erroneous, no specific finding will be required to show that same is prejudicial to interests of revenue [In favour of revenue] After order of assessment was passed for the relevant assessment year, the Commissioner issued notice under section 263 on the ground that the assessment order was erroneous and prejudicial to the interests of the revenue, inasmuch as the Assessing Officer, after treating the interest income as income from other sources, had failed to exclude the same for the purpose of computation under section 80HHC and while allowing logo and royalty charges the Assessing Officer had not taken into consideration the assessment order for the assessment year 2001-02 wherein the same had been treated as capital. Ultimately, the Commissioner set aside assessment order and remanded the matter for fresh consideration. The assessee challenged revision order contending that in the absence of any specific finding that the assessment order in question was prejudicial to the interests of the revenue, the power under section 263 could not be invoked. Held that for passing an order of remand after holding that the order is erroneous, no specific finding will be required to show that the same is prejudicial to the interests of the revenue. In the instant case, the Commissioner had held that the order was both erroneous and prejudicial to the interests of the revenue and after holding so, he was proceeding to give reasons for the same. Therefore, there was no illegality in the exercise of power by the Commissioner under section 263. CASES REFERRED TO Malabar Industrial Co. Ltd. v. CIT [2000] 243 ITR 83/109 Taxman 66 (SC) (para 3). JUDGMENT M. M. Sundresh, J. - The assessee has come up on appeal challenging the order passed by the Commissioner of Income-tax exercising the power under section 263 of the Income-tax Act, 1961, which has been confirmed by the Tribunal, by formulating the following substantial questions of law : "1. Whether, on the facts and in the circumstances of the…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492