2023 (6) TMI 1146 - SCH - Income Tax

SC dismisses special leave petition, vacates interim order, allows contentions under Section 263.

BSES Rajdhani Power Ltd. Versus Principal Commissioner of Income Tax

The SC dismissed the special leave petition, vacated the interim order, allowing the petitioner to raise all contentions under Section 263 of the Income ... Validity of Revision order u/s 263 - scope of exercise of power u/s 263 - as per HC revisional order, to the extent that it did not provide any pre-decisional opportunity to address the issues it dealt with, could not be sustained and ITAT has granted relief of a limited nature on that score - Also not agreed that those issues were incapable of consideration as they were gone into by the AO. Accordingly, the CIT, in exercise of his power under Section 263 will proceed to consider the assessee’s submissions only on those two aspects, before making his order. HELD THAT:- We are not inclined to interfere with the impugned judgment. However, we would like to clarify that the petitioner will be entitled to raise all pleas and contentions, including the contention that the preconditions for invoking jurisdiction under Section 263 of the Income Tax Act, 1961 are not satisfied before the Commissioner of Income Tax. We also clarify that while we have upheld the direction for remand for fresh hearing and decision, we have not made any observations/comments on the merits of the case. SLP dismissed. The Supreme Court of India dismissed the special leave petition and vacated the interim order. The petitioner can raise all contentions, including the satisfaction of preconditions under Section 263 of the Income Tax Act. The court upheld the direction for remand without making any observations on the case's merits.