TAX PICKINGS (INVOCATION OF POWERS UNDER SECTION 263 BY THE CIT AGAINST AN ORDER PASSED UNDER SECTION 148)

 It has been regularly seen in practice that the revisionary powers of the Commissioner of Income Tax are available for invocation under Section 263 of the Income Tax Act, 1961 when the order passed by the Assessing Officer is erroneous and prejudicial to the interests of the Revenue. An interesting controversy arose in CIT vs Barry-Wehmiller International Resources (Mad), [2022] 440 ITR 411 wherein one of the ancillary issues before the Hon'ble High Court of Madras, was that whether an order passed by the AO closing reopening proceedings under Section 148 of the Act can be revised under Section 263 of the Act. Interestingly, the Court did not decide it expressly, however it can be presumed from the way the judgment has been drafted that the Court has held that an order under Section 148 of the Act can be revised under Section 263 of the Act.

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