Transfer pricing comparability requires functional alignment, reliable financial data, and careful review of working capital and receivables adjustmen...
Transfer pricing rules require benchmarking corporate guarantees and associated-enterprise advances, while invalid domestic-transaction adjustments ca...
Prospective sugar export prohibition required registered letters of credit; private contracts and export quotas created no enforceable continuation ri...
Retroactive interim-moratorium exclusion permits protective asset disclosure and preservation measures against personal guarantors pending arbitration...
The ITAT held that Explanation 2 to section 263, inserted with effect from 1.6.2015, cannot be applied retrospectively to the assessment year 2013-14. The revision under section 263 requires the Commissioner to form a reasoned opinion that the assessment order was passed without necessary inquiry or verification. In this case, the assessee provided detailed explanations showing adequate verification by the AO. The Commissioner failed to specify what further inquiries were necessary or identify any defects in the assessee's submissions. Consequently, the exercise of revision jurisdiction by the Commissioner was without valid basis and amounted to invalid jurisdiction. The impugned order under section 263 was quashed, and the assessee's appeal was allowed.
The ITAT held that Explanation 2 to section 263, inserted with effect from 1.6.2015, cannot be applied retrospectively to the assessment year 2013-14. The revision under section 263 requires the Commissioner to form a reasoned opinion that the assessment order was passed without necessary inquiry or verification. In this case, the assessee provided detailed explanations showing adequate verification by the AO. The Commissioner failed to specify what further inquiries were necessary or identify any defects in the assessee's submissions. Consequently, the exercise of revision jurisdiction by the Commissioner was without valid basis and amounted to invalid jurisdiction. The impugned order under section 263 was quashed, and the assessee's appeal was allowed.
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 4794
Join Channel
TaxTMI 
