Revision of order that is erroneous in so far as it is prejudicial to the interests of revenue

[Admin TMI]

Question - What are the proposed amendments in section 263 of the Income-tax Act ?

AI Summary

Proposed changes to Section 263 clarify when tax orders are deemed erroneous, focusing on inquiries and higher court decisions. The discussion addresses proposed amendments to Section 263 of the Income-tax Act, focusing on orders deemed erroneous and prejudicial to revenue interests. It explains that the Principal Commissioner or Commissioner can revise such orders after hearing the assessee and conducting inquiries. The amendments clarify that an order is considered erroneous if it lacks necessary inquiries, grants relief without proper claims verification, disregards Board instructions under Section 119, or contradicts decisions from higher courts. These changes aim to provide clarity and will be effective from June 1, 2015.