TaxTMI 
TaxTMI 
Question - What are the proposed amendments in section 263 of the Income-tax Act ?
Revision of order that is erroneous in so far as it is prejudicial to the interests of revenue
28 Feb 2015 
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Erroneous-in-interest standard clarified: orders without required inquiries or contrary to binding instructions deemed prejudicial.
The amendment clarifies that an assessing officer's order shall be deemed erroneous in so far as it is prejudicial to the interests of the revenue if: the order was passed without necessary inquiries or verifications; relief was allowed without inquiry into the claim; the order is not in accordance with any Board direction under section 119; or the order is not in accordance with any decision, prejudicial to the assessee, rendered by higher courts. The Commissioner's revisional power remains subject to giving the assessee an opportunity of being heard and making an enquiry. (AI Summary)
The amendment clarifies that an assessing officer's order shall be deemed erroneous in so far as it is prejudicial to the interests of the revenue if: the order was passed without necessary inquiries or verifications; relief was allowed without inquiry into the claim; the order is not in accordance with any Board direction under section 119; or the order is not in accordance with any decision, prejudicial to the assessee, rendered by higher courts. The Commissioner's revisional power remains subject to giving the assessee an opportunity of being heard and making an enquiry. (AI Summary)