https://www.taxtmi.com/caselaws?id=209006 ITAT Mumbai held that CIT(A) lacked jurisdiction under section 263 to revise the assessment order regarding treatment of prepayment surplus from sales tax loan. The tribunal ruled that deferred sales tax liability credited to capital reserve constitutes capital receipt, not revenue receipt subject to taxation under section 41(1)(a). The Assessing Officer's view was deemed legally possible and correct, following precedent in Sulzer India Limited case. The surplus did not constitute remission of trading liability warranting taxation. ITAT set aside the CIT(A)'s section 263 order and restored the original assessment, deciding in favor of the assessee. en-us Fri, 11 Mar 2011 00:00:00 +0530 Mon, 02 Jun 2025 13:24:11 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=209006 ITAT Mumbai held that CIT(A) lacked jurisdiction under section 263 to revise the assessment order regarding treatment of prepayment surplus from sales tax loan. The tribunal ruled that deferred sales tax liability credited to capital reserve constitutes capital receipt, not revenue receipt subject to taxation under section 41(1)(a). The Assessing Officer's view was deemed legally possible and correct, following precedent in Sulzer India Limited case. The surplus did not constitute remission of trading liability warranting taxation. ITAT set aside the CIT(A)'s section 263 order and restored the original assessment, deciding in favor of the assessee. Case-Laws Income Tax Fri, 11 Mar 2011 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=209006