https://www.taxtmi.com/caselaws?id=466953 Explanation 2 to Section 263 treats an AO order as erroneous and prejudicial where required inquiries or verifications were not made; applied here to find no adequate inquiry into whether interest receipts were business income or income from other sources and no verification of nexus for claimed expenses. Because the AO issued only a single questionnaire and accepted returned income without further verification, the statutory condition in Explanation 2 was engaged and revision under Section 263 was sustainable; the revision was therefore upheld in favour of the revenue. en-us Mon, 24 Feb 2025 00:00:00 +0530 Wed, 25 Feb 2026 17:04:35 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=466953 Explanation 2 to Section 263 treats an AO order as erroneous and prejudicial where required inquiries or verifications were not made; applied here to find no adequate inquiry into whether interest receipts were business income or income from other sources and no verification of nexus for claimed expenses. Because the AO issued only a single questionnaire and accepted returned income without further verification, the statutory condition in Explanation 2 was engaged and revision under Section 263 was sustainable; the revision was therefore upheld in favour of the revenue. Case-Laws Income Tax Mon, 24 Feb 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=466953