2022 (6) TMI 132 - SCH - Income Tax

MAT Computation u/s 115JB - Revisions proceedings u/s 263 - CIT directed the AO to make certain additions to book profit u/s 115JB - HELD THAT - We have some reservations on the observation made in the impugned judgment that the Commissioner while exercising the power of revision under Section 263 of the Income Tax Act 1961 cannot examine an issue on merits. However we are not inclined to issue notice as we find that on merits the order passed by the Commissioner under Section 263 of the Income Tax Act 1961 is not sustainable. Recording the aforesaid the petition for special leave to appeal is dismissed.

Summary

The Supreme Court dismissed a petition for special leave to appeal, noting reservations on the observation that the Commissioner cannot examine an issue on merits under Section 263 of the Income Tax Act, 1961. The Court found the Commissioner's order under Section 263 not sustainable.