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2008 (7) TMI 380 - HC - Income TaxApplication of surcharge u/s 113 on search – power to initiate proceedings u/s 263 – Held that - Supreme Court has taken the view that the proviso to section 113 is clarificatory in nature and, therefore, surcharge on undisclosed income would be leviable - once the Commissioner of Income-tax (Appeals) had already shut the issue of levy of surcharge by the order dated December 11, 2003, it was not open to the Commissioner to invoke the provisions of section 263 and to reopen the issue over again - the issue was clearly debatable at the time when the notice and the order under section 263 were issued and passed. Consequently, the only conclusion that can be arrived at is that the initiation of proceedings under section 263 were without jurisdiction – order u/s 263 is not maintainable.
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