TMI BlogRevisiting the Scope of Revisionary Powers U/s 263: Assessing the Adequacy of Assessment Procedures in Taxation DisputesX X X X Extracts X X X X X X X X Extracts X X X X ..... by the Income Tax Appellate Tribunal (ITAT). The case centers around the application of Section 263 of the Income Tax Act, 1961 , concerning the revisionary powers of the Principal Commissioner of Income Tax, and the interpretation of Section 43(5) related to speculative transactions. The case involves a corporate entity (referred to as the appellant ) and the Principal Commissioner of Inco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d an order passed by the respondent under Section 263 for the assessment year 2014-15. The central argument was against the invocation of Section 263 , contending that the original assessment was comprehensive and free from any prejudicial error. Core Legal Principles Section 263 of the Income Tax Act : This provision empowers the Commissioner to revise any order if deemed erro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , observing that the transactions were integral to the appellant's business operations and thus fell outside the ambit of speculative transactions as defined in the Act. Treatment of Losses : The Tribunal noted that the Assessing Officer had allowed the losses post a thorough examination. The respondent's disagreement with this decision was not sustained by the Tribunal. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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