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Generate professional replies, appeals, opinions to Show Cause Notices, assessment orders, audit objections, and other legal communications using TaxTMI's AI Drafter.
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AI Drafter - (New and Powerful) ✕ Generate professional replies, appeals, opinions to Show Cause Notices, assessment orders, audit objections, and other legal communications using TaxTMI's AI Drafter.
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Issues: Whether revision under section 263 of the Income-tax Act, 1961 was justified on the ground that the Assessing Officer had not examined the capital gains and the computation of book profit under section 115JB.
Analysis: The assessee had furnished the supporting material relating to the acquisition and sale consideration before the Assessing Officer, including the computation, conveyance documents, BMRCL communication, ledger extracts, and TDS reconciliation. The assessment was completed after enquiry, and the mere absence of an express discussion on capital gains in the assessment order did not establish lack of enquiry. For section 115JB, the accounts were audited and certified under the Companies Act, and the Assessing Officer's role in scrutinising book profit is limited to the adjustments permitted by the statute. An order can be revised under section 263 only when it is both erroneous and prejudicial to the interests of the Revenue.
Conclusion: The revisionary order was not sustainable and the assessment order was restored.
Ratio Decidendi: Section 263 cannot be invoked where the Assessing Officer has made enquiries and adopted a permissible view on the basis of audited accounts and materials on record, since revision requires both error and prejudice to revenue.
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