ITR
Revision for breaking a CBDT instruction or court decision
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Facts
The law treats an order as erroneous if it was passed against a CBDT order, direction or instruction, or against a decision of the jurisdictional High Court or the Supreme Court prejudicial to the taxpayer.
Provisions and law
- Sec 263, Income-tax Act 1961 (now Sec 377, Income-tax Act 2025)The Principal Commissioner or Commissioner can revise an assessment order that is erroneous and prejudicial to revenue, after giving a hearing, within 2 years from the end of the financial year of the order.
- Sec 119, Income-tax Act 1961CBDT can issue orders, instructions and directions to tax authorities.
Analysis
Check whether the circular or decision actually applies to your facts and year. A circular may have been withdrawn or may apply only to some cases. Check if there are contrary decisions of your High Court. Address the specific circular or decision cited.
Conclusion
- Get the exact circular or decision cited.
- Check if it applies to your facts and year.
- Find any later or contrary rulings.
- Reply with that analysis.
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Revision, Sec 263 (now 377)
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