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| The Tax Publishers2019 TaxPub(DT) 2795 (Ahd-Trib) INCOME TAX ACT, 1961
Section 263
Where order of AO allowing assessee's claim for commission expenses to foreign parties without deducting TDS under section 195, was not erroneous and prejudicial to the interest of Revenue, the CIT was not justified in invoking jurisdiction under section 263 in respect of the said assessment order.
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Revision under section 263 - Erroneous and prejudicial order - Commission expenses to foreign parties without deducting TDS under section 195 -
CIT invoked his jurisdiction under section 263, holding that order of AO passed under section 143(3) as erroneous and prejudicial to the interest of Revenue on account of non-verification of commission expenses paid by assessee to foreign parties without deduction of TDS under section 195. Held: It was found that no proceedings under section 263 were initiated in respect of assessments framed under section 143(3) pertaining to subsequent assessment years. Revenue admitted the claim of assessee for commission expenses to foreign parties without deducting TDS under section 195 in subsequent assessment years, which reached finality. CIT under section 263 was under the obligation to initiate proceedings under section 263 for such assessment years also. Thus, the order of AO, allowing commission expenses paid by assessee to foreign parties without deducting TDS, could not be held as erroneous and prejudicial to the interest of Revenue, so as to invoke jurisdiction under section 263.
Relied:CIT v. Escorts Ltd. (2011) 338 ITR 435 (Del): 2011 TaxPub(DT) 0894 (Del-HC)
REFERRED :
FAVOUR : In assessee's favour
A.Y. : 2010-11
IN THE ITAT, AHMEDABAD BENCH
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