2001 (9) TMI 32 - HC - Income Tax

Summary

The High Court of Madras ruled in favor of the assessee, stating that the revisional order made by the Commissioner under section 263 of the Income-tax Act was illegal as it disregarded a beneficial circular issued by the Central Board of Direct Taxes in 1984. The court emphasized that the circular, which recommended orders under section 263 to be passed within two years of the original order, should have been followed by the Department.