Tuesday, July 26, 2011

Revision

An inadequate enquiry on the part of the AO would not, by itself, give occasion to the Commissioner to pass orders under s 263 merely because he has a different opinion on the matter, as held by DelHC in Fab India Overseas Pvt Ltd v CIT — In favour of: The assessee (partly); ITA No 55/2011.

Issues, in respect of which the assessee has preferred an appeal before the CIT(A), could not have been taken up by the Commissioner while exercising his powers under s 263(1).
Failure to conduct an enquiry on part of the AO with regard to international transactions made by the assessee with its associates gives jurisdiction to CIT to exercise power under s 263.

Decided on: 16 May 2011.

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