2024 (2) TMI 1348 - SCH - Income Tax

Validity of Revision u/s 263 - order of the AO is erroneous on the ground of not being in accordance with law - absence of actual business activity - As decided by HC 2017 (1) TMI 252 - BOMBAY HIGH COURT AO has not taken into account the relevant consideration of absence of actual business activity of the appellant for the purpose of treating the expenditure claimed as an allowable expenditure and loss to the revenue on account of the error in the assessment order is directly attributable to the error in the assessment order. HELD THAT - As submitted at the Bar that pursuant to the exercise of jurisdiction u/s 263 of the Income Tax Act, 1961, fresh assessment order has been passed and the same is also under challenge before the Appellate Tribunal (ITAT). In that view of the matter, we are not inclined to interfere in this case. The special leave petition is, hence, dismissed.

Summary

The Supreme Court dismissed the special leave petition as the fresh assessment order under Section 263 of the Income Tax Act, 1961, is under challenge before the Appellate Tribunal (ITAT).