2002 (9) TMI 43 - HC - Income Tax

Section 263 - Whether on the facts and in the circumstances of the case the Appellate Tribunal was right in holding that the Commissioner of Income-tax was not correct in invoking the provisions of section 263 of the Income-tax Act 1961 ? - The view of the Tribunal that claims made by the assessee was rejected by reason of the order of no assessment is therefore not correct. The further inference drawn by it that there was no prejudice caused to the Revenue as there was no acceptance of the claim which showed a substantial amount of a carried forward loss on unabsorbed investment allowance unabsorbed depreciation and unabsorbed development rebate is also not correct. - Commissioner was justified in invoking his power under section 263 of the Income-tax Act. The question referred is answered in favour of the Revenue and against the assessee.

Summary

The High Court of Madras ruled in favor of the Revenue, stating that the Commissioner was correct in invoking section 263 of the Income-tax Act. The Tribunal's view that there was no prejudice to the Revenue was deemed incorrect. The judgment referenced previous cases to support the decision.