ITR

Accepting the revision issue instead of fighting

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You can accept the issue raised. The revising authority will then pass an order, often directing a fresh assessment or modifying the original order, and tax will be computed on that basis.

Provisions

Sec 263, Income-tax Act 1961 (now Sec 377, Income-tax Act 2025)

Analysis

Accepting can make sense where the amount is small or the facts are clearly against you. Fighting a weak case costs time and fees. But check the penalty risk and the impact on other years. Get advice before deciding.

Close

  1. Weigh the tax at stake against the cost of contest.
  2. Check the penalty risk.
  3. Decide and reply clearly.
  4. Pay any resulting demand on time.

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