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Corporate guarantee valuation permits actual ascertainable commission while barring retroactive application and extended-period penalties for bona fid...
Proper-officer jurisdiction under UPGST penalty provisions upheld; participation on merits prevents bypassing the statutory appellate remedy through w...
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Pure-agent exclusion fails where hotel booking facilitators receive third-party services themselves, making entire customer consideration taxable as r...
The Appellate Tribunal allowed the assessee's appeal against the invocation of Section 263 by the Principal Commissioner of Income Tax (PCIT) for disallowing the entire purchases of Rs. 102,43,73,377/-. The Tribunal held that the Assessing Officer (AO) had reasonably disallowed only 10% of the purchases after duly considering the details furnished by the assessee during the assessment proceedings u/s 143(3). The PCIT's action of proposing to disallow the entire purchases against the basic principle of business, without appreciating that the assessee had achieved a turnover of Rs. 132,12,33,622/-, was erroneous. The Tribunal ruled that the AO's order cannot be termed erroneous to invoke Section 263, as it is not every error that should induce the PCIT to exercise powers under that section, especially when the AO has considered the issue carefully and cautiously.
The Appellate Tribunal allowed the assessee's appeal against the invocation of Section 263 by the Principal Commissioner of Income Tax (PCIT) for disallowing the entire purchases of Rs. 102,43,73,377/-. The Tribunal held that the Assessing Officer (AO) had reasonably disallowed only 10% of the purchases after duly considering the details furnished by the assessee during the assessment proceedings u/s 143(3). The PCIT's action of proposing to disallow the entire purchases against the basic principle of business, without appreciating that the assessee had achieved a turnover of Rs. 132,12,33,622/-, was erroneous. The Tribunal ruled that the AO's order cannot be termed erroneous to invoke Section 263, as it is not every error that should induce the PCIT to exercise powers under that section, especially when the AO has considered the issue carefully and cautiously.
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