Food supplement classification requires common parlance and authoritative tests, preventing treatment as proprietary Ayurvedic medicines without suppo...
Specified regulatory authority income receives conditional tax exemption, subject to non-commercial activity, unchanged income character, and return f...
Tax exemption for regulatory authority income applies retrospectively, subject to non-commercial activity, unchanged income sources, and return-filing...
Input tax credit conditions remain constitutionally valid, with eligible recipient claims considered under GST circulars and retrospective filing dead...
Bogus donation receipts justified commission income assessment and defeated political-party tax exemption for inaccurate accounts and reporting failur...
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.
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