Tax Authority Can Revise Assessment Order Based on Audit Objections Despite Assessee's Explanation.

The tax authority is permitted to revise an assessment order under Section 263 if the Assessing Officer (AO) fails to verify the assessee's explanation concerning investments in mutual funds or shares, even if audit objections arise post-assessment. This is supported by the Supreme Court ruling in the case of CIT vs. P.V.S. Beedies Pvt. Ltd., which allows reopening based on factual objections from an audit party. The High Court overruled the Income Tax Appellate Tribunal's reliance on the B&A Plantation case concerning the scope of inquiry under Section 263. .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X