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March 2026

Revision — Erroneous and prejudicial order — Lack of proper enquiry — Initiation of 263 at the instance of the AO cannot be done — Finding of the Tribunal well founded — Reliance upon notes submitted by the assessee before the AO — Cannot be stated that the AO did not consider all the factors and accepted the plea of the assessee and completed assessment — CIT is required to consider the explanation offered and take a decision — Failure to render any finding by CIT — Revision u/s. 263 not sustainable.

By Keshav Bhujle | Ritu Punjabi, Advocates
Reading Time 5 mins

64. Principal CIT vs. Britannia Industries Ltd.

(2025) 346 CTR 242 (Cal.)

A. Y. 2018-19: Date of order 09/07/2025

S. 263 of ITA 1961

Revision — Erroneous and prejudicial order — Lack of proper enquiry — Initiation of 263 at the instance of the AO cannot be done — Finding of the Tribunal well founded — Reliance upon notes submitted by the assessee before the AO — Cannot be stated that the AO did not consider all the factors and accepted the plea of the assessee and completed assessment — CIT is required to consider the explanation offered and take a decision — Failure to render any finding by CIT — Revision u/s. 263 not sustainable.

The scrutiny assessment for A.Y. 2018-19 was completed u/s. 143 of the Income-tax Act, 1961 by an order dated 22/03/2021. Subsequently, notice u/s. 263 of the Act was issued, requiring the assessee to show cause why the assessment order should not be treated as erroneous or prejudicial to the interest of the Revenue. The assessment order was sought to be revised on, inter alia, applicability of section 56(2)(x) to the acquisition of leasehold land and building and the disallowance of claim u/s. 43B in relation to reversal or write bac

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