Tax authority's substitution of projected figures with actuals overturned; original acquisition valuation upheld; transfer pricing issues remitted for...
Beneficial owner held liable for differential customs duty; royalties added under Rule 10(1)(c); confiscation, penalties under s.111(m), s.114A, s.112...
ITAT allowed the appeal, holding the PCIT's revision under s.263 invalid and quashing the s.263 order. The Tribunal found the AO had conducted requisite enquiries during the s.143(3) assessment, considered documentary evidence and law, and legitimately accepted the assessee's claim regarding payments to foreign agents and non-applicability of s.195 r.w.s.9. The prerequisites for invoking s.263-an order both erroneous and prejudicial to revenue-were not satisfied, and the show-cause notice lacked particulars and denied the assessee an opportunity on the verification direction, vitiating the proceedings. Consequently the direction to annul the assessment and reframe it was held bad in law.
ITAT allowed the appeal, holding the PCIT's revision under s.263 invalid and quashing the s.263 order. The Tribunal found the AO had conducted requisite enquiries during the s.143(3) assessment, considered documentary evidence and law, and legitimately accepted the assessee's claim regarding payments to foreign agents and non-applicability of s.195 r.w.s.9. The prerequisites for invoking s.263-an order both erroneous and prejudicial to revenue-were not satisfied, and the show-cause notice lacked particulars and denied the assessee an opportunity on the verification direction, vitiating the proceedings. Consequently the direction to annul the assessment and reframe it was held bad in law.
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