The Assessing Officer \u00a0accepted the assessee\u2019s computation of book profits under Section 115J off the Act . \u00a0The CIT \u00a0\u00a0invoked Section 263, stating that the assessment order was erroneous and prejudicial to revenue as the AO failed to examine the issue of decapitalization of interest while computing book profits. The Tribunal upheld the CIT\u2019s order, affirming the validity of revisional jurisdiction. On appeal, the High Court dismissed the assessee\u2019s challenge, holding that the AO had not applied his mind to key aspects, making the order erroneous. It further held that, the CIT\u2019s observations were not a final finding but a direction to recompute the book profits and the assessee failed to challenge the reassessment order, making it final and precluding further contestation. Accordingly, the court held that the CIT\u2019s exercise of jurisdiction under Section 263 was justified, and the appeal is \u00a0\u00a0dismissed. Followed \u00a0CIT, Nagpur v. Ballarpur Industries Ltd( 2017) 85 taxmann.com 10 (Bom)((HC) . Court has not expressed any opinion on merits. \u00a0\u00a0(ITA No. 324 of 2003 dt. 30 -1 -2025 ) (AY.1998 -99)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 263: Commissioner – Revision of orders prejudicial to revenue \u2013 Book profit – Decapitalization of interest- Failure of Assessing Officer to examine computation of book profits \u2013 Order of Tribunal affirming the revision order of Commissioner is affirmed . [S. 32AB, 115J, 260A]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-50652","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-daY","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/50652","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=50652"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/50652\/revisions"}],"predecessor-version":[{"id":50653,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/50652\/revisions\/50653"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=50652"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=50652"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=50652"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}