https://www.taxtmi.com/caselaws?id=407519 An assessment order can be revised under section 263 of the Income-tax Act, 1961 where the Assessing Officer fails to make enquiry on a material issue affecting taxable income. In this note, the material issue was the valuation of closing stock, where the assessment order contained no discussion despite audit and balance-sheet material indicating a possible discrepancy. The revisional authority examined the computation adopted by the assessee, found it incorrect, and recomputed closing stock on the basis of purchase invoices without disturbing the valuation method itself. The revision was sustained because lack of enquiry on a relevant valuation issue rendered the assessment erroneous and prejudicial to the interests of the Revenue. en-us Mon, 10 May 2021 00:00:00 +0530 Thu, 13 May 2021 08:28:32 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=407519 An assessment order can be revised under section 263 of the Income-tax Act, 1961 where the Assessing Officer fails to make enquiry on a material issue affecting taxable income. In this note, the material issue was the valuation of closing stock, where the assessment order contained no discussion despite audit and balance-sheet material indicating a possible discrepancy. The revisional authority examined the computation adopted by the assessee, found it incorrect, and recomputed closing stock on the basis of purchase invoices without disturbing the valuation method itself. The revision was sustained because lack of enquiry on a relevant valuation issue rendered the assessment erroneous and prejudicial to the interests of the Revenue. Case-Laws Income Tax Mon, 10 May 2021 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=407519