ITAT quashed the addition made under s.143(3) read with s.263, ...

AO's Acceptance of Interest Treatment in Original Assessment Cannot be Challenged After Section 263 Order Set Aside

February 1, 2025

Case Laws Income Tax AT

ITAT quashed the addition made under s.143(3) read with s.263, as the underlying revision order by Pr. CIT under s.263 was previously set aside. The Tribunal found that AO had conducted proper inquiry regarding interest treatment during scrutiny assessment. The difference between Form 26AS and ITR amounts was explained by interest received from banks being adjusted against project expenditure in company's financial statements. The assessee's explanation was accepted by AO during original assessment. Since the foundational s.263 revision order was invalidated, the subsequent addition made pursuant to it could not sustain. ITAT vacated the addition and set aside CIT(A)'s order upholding it.

View Source

← Previous Next →

ITAT quashed the addition made under s.143(3) read with s.263, ...

AO's Acceptance of Interest Treatment in Original Assessment Cannot be Challenged After Section 263 Order Set Aside

February 1, 2025

Case Laws Income Tax AT

You may also like:

Interest u/s 158BFA(1) - the interest u/s 158BFA(1) should be charged upto the date of original assessment order, i.e., the expression “date of completion of assessment...

The Assessing Officer (AO) reopened the assessment solely based on the information from a survey conducted by the Sales Tax Department, without independently examining...

Jurisdiction by AO to suo-moto convert protective assessment into substantive assessment post completion of original assessment proceedings - Once the ld CIT(A) was...

Correct head of income - interest received from partners - Department having accepted the treatment of the assessee in reducing interest from partners from...

Reopening of assessment u/s 147 - Reasons to believe - The ITAT thoroughly examined the reasons recorded by the AO for re-opening the assessment and found that there was...

The Appellate Tribunal addressed the issue of levying interest u/s 234B in proceedings u/s 147/148. The AO had enhanced the interest from the date of the original...

Revision u/s 263 - during the course of assessment, the AO made an addition on account of unexplained cash credit of unsecured loan u/s 68 - AO omitted to disallow the...

The Assessing Officer (AO) issued a corrigendum correcting the total income in the original assessment order. The AO has the power to withdraw, modify or substitute an...

Validity of Revision u/s 263 - The Pr. CIT had argued that the original assessments were inadequate and missed critical checks, which purportedly rendered the...

Reopening u/s 147 - original assessment u/s 143(3) - notice issued within 4 year - specific queries were raised in original assessment proceedings, which were duly...

Validity of assessment u/s 153 - When the order of the Tribunal nullifies the total income assessed or determined in the original order of an assessment, it definitely...

Reopening of assessment u/s 147 - AO has reasons to believe that such payments which were not considered during the original assessment escaped assessment and therefore,...

Case involved revision u/s 263 by the Commissioner of Income Tax (CIT) setting aside assessment order regarding rent recovered from specified persons and treatment of...

Assessee received funds from four parties, which were not considered by the Assessing Officer (AO) during assessment proceedings u/s 147 read with Section 144. The...

Issue of reassessment u/s 263, where the Commissioner of Income Tax (CIT) upheld the reassessment as erroneous and prejudicial to the Revenue's interest for verification...

Quick Updates: