https://www.taxtmi.com/caselaws?id=403738 Explanation 2 to section 263(1) of the Income-tax Act was treated as an enabling, procedural provision applicable to revision proceedings when the Commissioner passed the order, and its invocation was therefore permissible in principle. However, revision on the ground of inadequate enquiry into the taxability of headquarter service fee was not justified because the Assessing Officer had issued notices, examined the agreement and supporting material, considered the assessee's claim of non-taxability, and adopted a possible view consistent with the prior year. As the jurisdictional conditions in clauses (a) to (d) of Explanation 2 were not met, the section 263 revision was unsustainable and the revisionary order was set aside. en-us Fri, 05 Feb 2021 00:00:00 +0530 Wed, 28 Jul 2021 18:04:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=403738 Explanation 2 to section 263(1) of the Income-tax Act was treated as an enabling, procedural provision applicable to revision proceedings when the Commissioner passed the order, and its invocation was therefore permissible in principle. However, revision on the ground of inadequate enquiry into the taxability of headquarter service fee was not justified because the Assessing Officer had issued notices, examined the agreement and supporting material, considered the assessee's claim of non-taxability, and adopted a possible view consistent with the prior year. As the jurisdictional conditions in clauses (a) to (d) of Explanation 2 were not met, the section 263 revision was unsustainable and the revisionary order was set aside. Case-Laws Income Tax Fri, 05 Feb 2021 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=403738