Pre-amendment reassessment limitation bars late notices under the preserved regime, invalidating consequential reassessment for affected earlier asses...
Cash-sales explanations for bank deposits require documentary reconciliation; reassessment notice survived where effective response time was available...
Functional comparability in transfer pricing prevents ad hoc arm's length adjustments where functions, assets, risks and reliable comparables are unes...
Contingency expenses, exempt-income disallowance, and royalty benchmarking: unsupported adjustments were deleted under consistent accounting and trans...
ITAT held that revision under s.263 was invalidly invoked where the AO, after obtaining and considering information and the assessee's explanation regarding equity shares acquired below market value under s.56(2)(x)(c), passed an assessment order adopting a plausible view. The Tribunal found the assessment neither erroneous nor prejudicial to the interests of revenue, noting that s.263 jurisdiction requires both error and prejudice to coexist. Where the AO has investigated and taken a tenable view, mere disagreement by the PCIT does not vitiate the assessment unless the AO's view is unsustainable in law or contrary to record. Appeal of the assessee was allowed.
ITAT held that revision under s.263 was invalidly invoked where the AO, after obtaining and considering information and the assessee's explanation regarding equity shares acquired below market value under s.56(2)(x)(c), passed an assessment order adopting a plausible view. The Tribunal found the assessment neither erroneous nor prejudicial to the interests of revenue, noting that s.263 jurisdiction requires both error and prejudice to coexist. Where the AO has investigated and taken a tenable view, mere disagreement by the PCIT does not vitiate the assessment unless the AO's view is unsustainable in law or contrary to record. Appeal of the assessee was allowed.
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